The deed-in-lieu of foreclosure should not affect your credit as much as a bankruptcy. In most cases the only signs of this process that will appear on your credit report will be that you were late on some payments, if that is the case. Additionally a bankruptcy filing stays in a person's credit report for about seven years.
A deed in lieu of foreclosure definitely is a significant negative on a credit report and makes a significant impact on credit scores. You cannot believe ANYTHING that the lenders (actually the servicers) people tell you on the phone. These are people in a call center, with NO legal training. I frequently am advised of very serious misstatements they make.
A deed in lieu of foreclosure with no concessions is a bad thing. That means you sell your house, and the lender retains its rights to sue you for deficiency judgment. In Florida the lender can easily obtain a deficiency judgment against you if your debt exceeeds the value of the property recovered, sold short or sold in the Action of Foreclosure. This is called a deficiency judgment. If thelender obtains a deficiency judgment, it can use that to levy on any non-exempt assets you own, whether in Florida or any other state in the US. The life of such a judgment is 10 years, and is then renewable for another 10 years.
What's more, the foreclosure Plaintiff can, once it obtains a deficiency judtment, come after non-exempt bank accounts, vehicles, boats, real estate or anything else you own and can garnish wages as well.
You need a knoweldgable foreclosure defense attorney IMMEDIATELY. . Check the web site of the National Association of Consumer Advocates, www.naca.net to find someone in your area who specializes in foreclosure defense.