Deed in leiu of

Letter to “Ask Leon”

I know this doesn’t pertain to BK but do you know the difference that a deed in lieu of instead of a foreclosure will have on your credit?

Leon Says…

Here is a wild guess: I would expect them both to affect your credit the same, unless the account was current and in good standing at the time the lender accepts a deed in lieu. However, most lenders will not accept a deed. They usually prefer to foreclose.