Mortgage expert Terry Bloom says a ‘deed in lieu’ wont bruise your credit rating as badly as a foreclosure. Here’s how it works, you give your home to your lender because you cant pay for it anymore. The lender then sells the property to recover some of the debt and makes your loan as paid, releasing you from liability. You do have to find a new place to live, Bloom says its better than walking away.
You will be taxed on the difference between what your home is worth versus your mortgage balance. Not all banks or lenders accept ‘deed in lieu’s.’
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.