Does a foreclosure affect your credit rating more than a bankruptcy?
Question:
Answer:
It can seriously affect your credit particularly if you are applying for a home loan. Home lenders see foreclosure as a kiss of death except to high cost mortgage lenders that will allow them (after certain time limits). You will pay a significant price in the interest rate and possibly loan closing costs as well. If you lose a property in bankruptcy is will also be viewed very negative. However in a Chapter 13 BK you payback a portion of your consumer debts and typically the BK allows you to to tack the mortgage delinquency on to the balance and begin to make payments again to avoid losing your home. The mortgage payments are typically paid outside the BK. You must keep the payments current or a new vicious cycle begins
Yes...if you are in the situation you should definatly go for the bankruptcy..it will stay on your credit for 13 years but you can start to rebuild after 3. The foreclosure will also stay for 7-13 years but look worse because it wont be settled...
It affect as well. Foreclosure, bankruptcy, they both hold hands is just another name for each other.
To correct the above response, a forclosure only stays on your record for 7 years.
A bankruptcy looks worse on your credit rating. Much worse! Tag lines will appear on every debt you have.
But a foreclosure is bad also. You want to get kicked in the head, or kicked in the groin? Both will cripple you.
If things are that bad, consult a bankruptcy attorney so he can go over your whole situation, and properly advice you. If you have income you probably won't qualify for a Chapter 7 anyway, and Chapter 13's are not pleasant!
Read the links below for more information. Good luck.
if your heading into foreclosure I can help stop it contact me. wshusa@chrisblanks.com
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