Is a foreclosure or bankruptcy worse?Of course I know they are both bad.?
Question:
See if your mortgage company will accept a deed in lieu of foreclosure.
Foreclosure is worse than bankruptcy. With a bankruptcy you are able to put a hold on foreclosures or have your home payments restructured to better suite your payment ability, depending on the type of bankruptcy you choose. With a foreclosure that just means you did not even try to make any kind of arrangement and didn't care.
Yes a bankruptcy will hurt your ability to get credit or get good interest rates for a couple of years. But a foreclosure would hurt you longer, especially if the bank was unable to sell the property for at least the amount owed on the loan. Then not only would you have a foreclosure on your credit you would also have a judgment the bank might be able to get against you because you still owe them.
So, if you are that point where you just can't pay your bills, then you might want to consider bankruptcy.
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