Deed of Lieu vs. Foreclosure--credit

[IMBROKE]

Is one really better than the other? My property has 2 lien for a total of $487. No tax lien... yet. I am 4 months behind. I've secure an attorney to file chpt 7, but debating whether to have the attorney work with lender on deed in lieu. How will it show on the credit report? How does future lender view deed of lieu? Is it equivalent of a foreclosure? Is one better than the other?



Any input is appreciated!

Thanks!

-IMBROKE

[SinkingFast]

DIL looks better down the road, generally speaking, than Foreclosure.

BUT, you're gonna have to offer and the Lender is gonna have to accept. From what I've read, DIL's don't happen successfully all too often.

If you wanna offer a DIL or ask for a Short Sale, the Lender is gonna want you to have tried marketing the house on your own first. A clean, well kept house that's aggressively priced and marketed to sell quickly.

Short Sale can be a slippery slope. If you haven't had your loan very long AND you didn't have a personal circumstance (illness, job loss or such) you could be walking into a case for Fraud. With Short Sale, it's like applying for the Loan in reverse. You have to tell the Lender your monthly income and expenses. You could be handing the Lender all the info they need to sue you for taking the Loan under fraudulent pretenses from the start.