The pros for a deed in lieu of foreclosure (DIL) include less damaging items on your credit report, less credit score impact than a foreclosure, and less debt than a foreclosure. The downside? Damaged credit history and problems with future lenders. Thankfully after a DIL, Credit Glory can help you repair your credit and get it back on track.
What is a Deed in Lieu of Foreclosure vs. Foreclosure? (& the effects on your credit)
A deed in lieu of foreclosure (DIL) is a bit different than an actual foreclosure. A DIL is an agreement to surrender your property to your lender voluntarily — instead of forced foreclosure. The downside? Both can have negative effects on your credit score.
The good news is — with a little work — your credit score can be rebuilt after both. There are many ways to start rebuilding credit after a DIL, but credit repair with help from a reputable company (like Credit Glory) is a great place to start.
When is a DIL the best choice for you (& when you should dispute)
Whether or not you should pursue a DIL depends on several factors and requires careful consideration regarding the pros and the cons. What are the alternatives to a DIL? If the cons outweigh the pros for your situation, a short sale may be a better choice.
Sometimes there are no alternatives to a DIL. If that's the case focusing on the future and rebuilding credit is the smart move. After a DIL, a credit repair expert (like Credit Glory) can make it easier for you to dispute inaccurate info and monitor your credit — for long term protection.
Deed in Lieu of Foreclosure — The Pros
Here are some benefits when opting for a DIL:
- Reduce derogatory credit remarks - Trying to pay your mortgage when you really should request a DIL may result in more negative items — like late payments and foreclosure.
- Slightly less score impact vs. foreclosure - DIL's and foreclosures both reduce your score, but a DIL isn't as drastic.
- Removes the debt from your report - One DIL perk is removing the debt record from your report. This makes it a lot easier to rebuild your credit w/ Credit Glory & move on from the negative item.
Deed in Lieu of Foreclosure — The Cons
There are some downsides to consider before requesting a DIL too like:
- Damage to your credit report - There's no way around it — a DIL reduces your credit score. This is why it's crucial to have a plan to rebuild your credit after a deed in lieu of foreclosure.
- Credit history may deter future lenders - Another future issue is difficulty with your next mortgage. The good news? A partner like Credit Glory helps you rebuild your credit & get better loan terms.
Your steps after a Deed In Lieu of Foreclosure (& rebuilding your credit)
If a DIL is the best option for you, your next step is to start working on rebuilding your credit immediately. There are several ways to do this, but identifying (& disputing) negative info is a great place to start. What's the easiest way to do that? Work with a credit repair expert — like Credit Glory — with proven disputing tactics (& high ratings).
Recover from a DIL with help from Credit Glory, Today!
Disputing negative items on your credit report is hard work! It takes a lot of time, effort, organization, and follow up. The good news? Our team of credit repair professionals is here to simplify everything! Let your dedicated credit repair expert relieve you of the stress, hassle, and time needed to fight your inaccuracies and boost your credit score (FAST!)
Credit Glory is a credit repair company that empowers consumers with the opportunity and knowledge to reach their financial dreams in 2020 and beyond.
Call us at (855) 938-3044 or set up a consultation to get started, today!