Which is worse for my credit, claiming banckruptcy on just my home or foreclosure?
Question:
Answer:
with a foreclosure - you walk away and yes it goes on your credit BUT the federal government states that you are allowed to again own property 24 months from the date of foreclosure (if you keep the rest of your credit clean).
you cannot do this with a bankruptcy.
good luck :)
I don't think you can file bankruptcy just on your home.
See a local lawyer who specializes in bankruptcy proceedings.
Neither are good on your credit report. If you can not make the monthly mortgage payments you should be more pro-active about this mortgage.
First of all you should contact your lender and see if you and the lender can work out something to eliminate the foreclosure. At least you can find out additional options that you might have.
#1. You might ask if you can get a deed-in-lieu of foreclosure.
#2. You might be able to re-instate the loan.
#3. There is a possibility of a short-sale.
So check out your options before you allow a foreclosure of you going into bankruptcy.
If you can not pay your debt, but want to try and safe your home, you might consider speaking with an attorney and see what your options are through curing your foreclosure by way of bankruptcy.
I hope this has been of some use to you, good luck.
"FIGHT ON"
both are just as bad and will impact your ability financially for years to come. So if you can avoid it, do so. If you need help, try calling 888-995-Help. It is a HUD approved counseling service.
They are all bad. You can obtain home financing after two years of a foreclosure or bankruptcy. However, you would need to reestablish credit and have a large down payment. Otherwise, wait seven years. We don't consider past bankruptcies or foreclosures after 7 years.
Neither are very good, but the foreclosure can generally be considered a little bit worse, unless you fail to meet the bankruptcy payments.
The first thing you need to understand, though, is that potential lenders look at the entire credit situation. If it's just your house that is in bad shape with late payments, but car loans, student loans, credit cards, etc. are paid on time, neither the bankruptcy nor the foreclosure will have such devastating impacts. But if you're behind on other bills, then both will help to drag down your credit score even further.
If you file the bankruptcy to avoid foreclosure, you'll want to complete the payment plan. This is usually pretty tough for homeowners, since they have to make the bankruptcy payment, plus their regular monthly mortgage payment, until the defaulted amount is paid off. Add in attorneys fees and court costs, and it may be an expensive payment. If you default on this and the home goes back into foreclosure, then that will be the worst of both worlds.
So if you know you won't be able to afford the bankruptcy anyway, and it will eventually result in foreclosure, why bother filing in the first place? You may want to consider some other options to prevent losing the home, like a short sale or a deed in lieu of foreclosure. If you can keep both of them off your credit, then you'll be a little bit ahead of the game in terms of purchasing a new house later on.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
More Related Questions & Answers...