Deed in lieu of foreclosure: one voluntarily gives their home to the lender in exchange for cancellation of their loan

Short Sale: where the lender allows the homeowner to sell their home for less than what is owned

Foreclosure: where the lender takes the home through a court proceeding

Is one choice better for your credit score than another?

No: All of the options come out to be about the same on your credit score because all of these events represent a loan default. Check out this chart showing how each of these items will affect credit scores at different credit levels.

However, lenders may look more favorably at a short sale than a foreclosure.

If you would like to learn more and/or receive assistance a bankruptcy, short sale, or a loan modification, please contact us.

Related posts:

1. Home Affordable Foreclosure Alternatives Program or HAFA Program
2. Simply Put: Definitions of Loan Modifications and Short Sales
3. A Few Downfalls of Short Sales
4. Short Sale Numbers
5. I’ve Completed a Short Sale… Now What? Do I Owe Anything Else?