Warranty deed in lieu of forclosure

I received a documents in the mail for a short sale on a timeshare in florida. I was told by the representative that I will be clear of all financial responsibilities and this will not be reported to the credit bureau. Can someone explain what the warranty in deed in lieu of forclosure is? Will I this effect me financially in the future in terms of credit reporting and paying taxes on the 1099 form.

TIA

Fr_Chuck

basicly the lender is buying the deed from you for what is owed on it. if they are offering you deed in lieu of foreclosure.

But a deed in lieu of foreclosure is not a short sale that is something else.
A short sale is where there is a buyer and you sign the deed of the property over to them but they pay less than the amount of the mortage but the mortage company will accept this payment as payment in full.

So you would not have a short sale and a deed in lieu of foreclosure both.
Since normally these happen only after being many months behind in payments it will have little effect on a already damaged credit report from late pays on this account. ** I have never heard of anyone doing this before they were serously late.

magjoe2

I've been late on my payments for awhile. Its a warranty deed in lieu of forclosure. So will it show up on my credit report as a forlosure?