Loans, Debt & Credit - View Single Post - Credit Implications of a Deed in Lieu of Foreclosure

thegoat · 08-05-2009, 05:07 PM

Moe,

I recently posted this same question in another part of the forum not realizing this was where I should have posted regarding DIL.

Please try to give me some advice regarding this:
My attorney is negotiating with my lender's attorney regarding an investment condo I own that is in litigation. The lender's attorney said they will entertain either a DIL or a short sale but that the DIL carries no 1099C. My accountant tells me not to worry about the 1099C as it is business but I need to know...if I took the DIL and they mark it as above, will my credit be tarnished. There are no late payments as Im up to date (performing loan). I just am under the impression that a DIL, no matter how it is reported is still a foreclosure as such.

The lenders attorney said they would probably put Disputed but Resolved???

Please, I need some advice ASAP as I must let my lawyer know what I decide. Thanks.

08-05-2009, 05:07 PM	#4 (permalink)
thegoat Member Join Date: May 2008 Posts: 27 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit Implications of a Deed in Lieu of Foreclosure Moe, I recently posted this same question in another part of the forum not realizing this was where I should have posted regarding DIL. Please try to give me some advice regarding this: My attorney is negotiating with my lender's attorney regarding an investment condo I own that is in litigation. The lender's attorney said they will entertain either a DIL or a short sale but that the DIL carries no 1099C. My accountant tells me not to worry about the 1099C as it is business but I need to know...if I took the DIL and they mark it as above, will my credit be tarnished. There are no late payments as Im up to date (performing loan). I just am under the impression that a DIL, no matter how it is reported is still a foreclosure as such. The lenders attorney said they would probably put Disputed but Resolved??? Please, I need some advice ASAP as I must let my lawyer know what I decide. Thanks.