what is a Deed in Lieu of Forbearance?

Question

does it affect credit?

Answer 1

Call it a voluntary foreclosure if you wish. Of course it affects your credit. Your credit has already been significantly affected if things have deteriorated to that point.

Answer 2

Deed Of Forbearance

Answer 3

Maybe you mean a Deed in Lieu of Foreclosure? That is where the mortgagor gives the property to the lendor instead of paying the mortgage off. The lendor prefers this over foreclousre because they save on legal fees, plus they can sell it sooner. The only advantage to the mortgagor is it doesn't look as bad on a credit rating as a foreclosure does. If you are considering this, try to negotiate some cash for moving expenses. They will want to avoid the eviction costs as well. The lendor calls this "Cash for keys". You may get a few hundred dollars.

Answer 4

No such thing.
There is a forbearance agreement that you sign when you are trying to avoid a foreclosure with the lender and then there is a deed in lieu of foreclosure that you sign if the agreement you previously signed is not met. Or at the choice of the lender they might foreclose any way.