foreclosure vs. Deed in Lieu of foreclosure

[rrood]

What is the name of your state? AZ
In very specific terms what is the diffrence between a deed in lieu of foreclosure and an actual foreclosure ? What are the actual nimbers in terms of credit score penalties?Is there any advantage in terms of how long your credit is affected?Our mortgage company originally declined a short sale and then "tenatively" accepted the deed in liue based on some return of documents and fees for a title search.The offer had no timeline attached but they have now rescended the offer as it took us nearly thirty days to put together the documents and procure the funds.Is there a phone number to contact someone to review this.


Thank you

[nextwife]

A lender has the option of OFFERING a DIL, which allows them to get a non performing asset off their books more quickly. However, a bank for example, MUST refer a file to foreclosure once it reaches a CERTAIN NUMBER OF DAYS DELINQUENT. Therefore the financial advantage to the lender, which is their savings on the bulk of the FC legal fees is lost if you fiddle around too long. A FC is far worse than a DIL. Also, they now have an additional thirty days of taxes, of unreceived interest, etc. You really should have responded more quickly. A file in default is counted by Days OF DELINQUENCY.

[rrood]

From Arizona

There was no mention of timeline or any sense of urgency in the original "tenative" offer of deed in lieu and the delay in our response was mostly due to arranging the aprox $ 1600 for the title search.Your description of the differnce in a full foreclosure as " far worse" is a little vague can you respond to the specific questions I asked.I appreciate your time.

Thanks