How will signing a deed in lieu of foreclosure for a timeshare effect my credit?
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How will signing a deed in lieu of foreclosure for a timeshare effect my credit?
The timeshare was not initially reported on my
credit.
Asked on February 18, 2017 under Real Estate Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If the foreclosing entity agrees to accept the deed in lieu as full payment or satisfaction of any amount due, giving up any right to sue you for any unsatisfied amounts or balance (e.g. any amount due in excess of the value of the property), then there should be no or minimal adverse affect on your credit: you would have satisfied the debt through the deed. But in case the debt exceeds the timeshare's value, you need them to agree that accepting the property satisfies the debt; otherwise, you will still have an outstanding debt against you (and could potentially be sue for it).
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