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Both Deed In Lieu and Foreclosure will affect you in the same exact way. You will not be eligible for a Fannie Mae insured loan for 5-7 years. Your credit will be negatively affected to the tune of 200-300 points.
After a Foreclosure or Deed In Lieu you will be faced with a Deficiency Judgment, which will come to you in the form of a 1099c. This judgment will be in the amount of loss between where the bank sold your home and what you still owed on your mortgage. In most cases this amount is very big. This being said, How will you pay taxes on such a large amount? This might even force you to a higher tax bracket.
Keep in mind that after you are finished with getting foreclosed upon the public record will remain for up to 10 years. This can prevent you from getting out from under your past house problem.
Lastly, many occupations will revoke your security clearance if you have gone through a foreclosure or deed in lieu. Often times this results in loss of employment.