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EDITED: Which is harder to recover from Foreclosure or bankruptcy?

I asked this wrong.  I meant severely bed credit or bankruptcy.  I am trying to decide what to do with my house.  short sale and walk away with a credit score of 400 (before the foreclosure) or foreclose and file bankruptcy for the over head.

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Anonymous

Asked by Anonymous at 4:36 PM on Mar. 16, 2011 in Money & Work

Answers (8)
  • I would say foreclosure. I filed bankruptcy to avoid foreclosure.
    Anonymous

    Answer by Anonymous at 4:40 PM on Mar. 16, 2011

  • Foreclosure for sure.

    iluvmykidsxoxo

    Answer by iluvmykidsxoxo at 4:40 PM on Mar. 16, 2011

  • Foreclosure . . . that looks really bad on your record.
    ImaginationMama

    Answer by ImaginationMama at 4:43 PM on Mar. 16, 2011

  • I would set up a consultation with a bankruptcy lawyer . . . do you want to keep the house, or did you go upside on your loan?
    ImaginationMama

    Answer by ImaginationMama at 4:47 PM on Mar. 16, 2011

  • We filed bankruptcy & renegotiated with our mortgage company so we could keep our home. We also did that for our cars. It worked out well for us. Few years later we were able to actually sell the house & get a different one.
    Anonymous

    Answer by Anonymous at 4:51 PM on Mar. 16, 2011

  • We do not want to negotiate the house any longer. It has been 2 years and the MHA has not gone through yet. They will not be able to lower the price low enough. I contacted a lawyer but because we have no debt other than the house we do not qualify. If we forclose with over head we will. the short sale would forgive us any over head but will kill my credit score further. I wasn't sure which was the lesser of the two evils. We move to an apt in may
    Anonymous

    Comment by Anonymous (original poster) at 4:54 PM on Mar. 16, 2011

  • If it were me, I would short sale with no overhead. I really think that you will be able to get your credit score up again alot quicker that way. If you foreclose, it looks like you will have a foreclosure AND a bankruptcy on your record . . . . I think that will be worse. Are you preapproved for a short sale already? If not, call a realtor and get it listed.
    ImaginationMama

    Answer by ImaginationMama at 5:03 PM on Mar. 16, 2011

  • We were in basically the same situation last year. We opted to file bankruptcy, even though the only debt we had was our home. Bankruptcy is easier to recover from because after a year or two your credit goes up, due to the fact that creditors know you cannot file bankruptcy again for X amount of years. You may have to shop around for a better lawyer, we did. I wish you the best of luck.
    mommatara1268

    Answer by mommatara1268 at 6:34 PM on Mar. 16, 2011

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