Will a deed in lieu of foreclosure appear as a foreclosure on my credit report?

Full question:

If I was to do a Deed in Lieu of Foreclosure will this go on my credit report as a foreclosure? I live in Utah, but my home is in Alabama.

Answer:

A deed in lieu of foreclosure is a negative mark on your credit report, but it is less damaging than an actual foreclosure. Both will remain on your credit report for seven years. After a deed in lieu, you typically need to wait about three to four years before you can buy another home with competitive interest rates.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

A deed in lieu of foreclosure negatively impacts your credit score, though it is generally less damaging than a foreclosure itself. It will remain on your credit report for seven years, potentially making it harder to obtain new credit during that time.