Escrow & Title

In Arizona, a 'deed in lieu of foreclosure' affects the borrower's credit similar to:

AA standard home sale
BA foreclosure—both significantly damage credit✓ Correct
CA refinance
DA short sale without deficiency

Explanation

A deed in lieu of foreclosure, like a foreclosure and short sale, significantly damages the borrower's credit (typically reported as a foreclosure or deed in lieu). The impact is generally similar to a completed foreclosure.

Related Arizona Escrow & Title Questions

Practice More Arizona Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →