Posted by Joe Kaiser on January 16, 2003 at 17:52:51:
I don’t believe a deed in lieu would show up on anyone’s credit report because no one here would be reporting to a credit bureau and no one from the credit bureau would be out there looking for such an animal.
The real problem isn’t so much the credit report but the fact that loan applications sometimes ask difficult questions, one of which is typically, “have you ever deeded a property in lieu of foreclosure.” That would be tough one for them to get around in the future.
Foreclose Second to avoid DOS per Bronchick ? - Posted by Bryce (ID)
Posted by Bryce (ID) on January 16, 2003 at 15:03:19:
I am trying to get some clarification on a technique described in Bronchick’s course Alt RE Financing. I’ve seen it described by others but I have a question concerning the effect on a subject-to sellers credit report. The situation is the seller will take 3,000 to give subject-to. The method described is loan the amount to the seller on a second. The second wil never receive any payments and will be defaulted and deeded-in-lieu of foreclosure to buyer. Of course all the proper paperwork will be signed in advance of any cash leaving my hand.
In the course Bronchick says after a question by an attendee about the effects of this procedure that “No, no,no, you can’t report to TRW. They won’t let you.” I would like to use this procedure.
I know I can’t report to any of the agencies, but I have a
concern about making sure I tell them upfront all the details about doing this.
Is there any way to do this without it showing up on their credit report?
If not; then I couldn’t do it in this way unless they were already in default on the first, thereby making little difference in having two notices of default and one deed-in-lieu on the court records of their report.
Is this correct or does anyone have another angle on this?