What is worse for your credit score a foreclosure or a bankruptcy?
Question:
Answer:
Bankruptcy is worse, but both will seriously kill our credit.
boff there equally damaging
A BK
I have to say foreclosure. With a BK lenders in the future will know that you don't have any other obligations because you filed BK on them.
With a foreclosure it will haunt you. When banks look at your worthiness in the future they will see that with all of the help that is out there you couldn't come up with a plan to avoid them having to take owner ship. Banks rely on people to make good on loans so that they never have to maintain the property.
If you are in distress you should look into a short sale procedure to avoid BK and your credit with the foreclosure mark.
Most of the time both go hand-in-hand.
I would say that from my experience if you file for bankrupcty, it's on your credit for about 7 years or so. If you have a foreclosure and no bankrupcty then it'll follow you much much longer.
So in the grand scheme of thing, I would say foreclosure is worse but not by much.
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