89Special Condition Codes
Status Code 89: Deed in Lieu of Foreclosure
Consumer transferred property deed to lender in lieu of foreclosure
Overview
- Used when consumer voluntarily transfers property ownership to avoid foreclosure
- May result in waived deficiency balance in some cases
- Less damaging than completed foreclosure in some scoring models
- Consumer avoids foreclosure process and associated costs
Common Use Cases
- 1Homeowner transfers deed to avoid foreclosure proceedings
- 2Negotiated deed transfer as part of workout agreement
- 3Short sale alternative when property value exceeds debt
Reporting Guidelines
- Report remaining balance if deficiency exists
- Report zero balance if deficiency was waived
- Include date of deed transfer
Other Special Condition Codes
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