My husband and I must give up our home due to unemployment. A RE agent has been obtained to sell as a short sale.

My financing institution called and asked if we would be interested in signing "deed in lieu " instead of going for a short sale.

My question is which one would be better for our credit rating. Of course the financing company is telling me that both ways will show as a charge off on our credit report and carry the same negative terms.

Is this true?

Expect your credit to be basically shot, but remember the bank does not have to accept a short sale, they may refuse it if they wish.

I would jump at the "in lieu" if I was in a possible foreclosure.