First of all, as far as your credit score goes, banks usually report a deed in lieu as a foreclosure. In other words, a deed in lieu will probably have the same effect on your credit score as a regular foreclosure. Further, even if a bank has a deed in lieu, they will likely require you to sign a note saying you will pay them any amount left over if the sale of your home is less than what you owe.
You’re probably wondering: What is the advantage of a deed in lieu over a foreclosure? For most people, there isn’t one. If you accept the foreclosure, you should ensure your agreement states you will not owe any amount on a potential deficiency sale. Both deeds in lieu and foreclosures will look the same on your credit score, so bankruptcy is also another consideration here.
If you are thinking of filing bankruptcy, contact a Jacksonville Bankruptcy Attorney today. If your home is facing foreclosure, contact a Florida Foreclosure Defense Attorney to further discuss your options.