Lesser of Two Evils?…
By Heather Faucher | Posted on July 3, 2009 | Filed Under Bankruptcy
All across the nation, homeowners are facing the financial squeeze from the ailing economy. From outright job loss, to cutbacks in salary, to declining home sales and skyrocketing health care costs, many now must make an awful choice. Which is “better” for their credit reports? Letting their homes be foreclosed on, or declaring bankruptcy?
Like so many other things in life, there’s no easy black and white answer to this question. Either road can definitely be a hard one to travel. A foreclosure, for instance, will stain your credit report for 7 years. A bankruptcy’s going to show up for 10. Don’t immediately assume, however, that foreclosure is automatically the better choice just because it shows up for less time on your credit report.
“A foreclosure is very serious to mortgage lenders,” says Ray Hooper, Education and Housing Director for the Consumer Credit Counseling Service of Greater Dallas, a non-profit agency that tries to help people facing foreclosure keep their homes. “They’re going look at a foreclosure more seriously than they will a bankruptcy that doesn’t include the house.”
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Tags: Bankruptcy, foreclosure, home foreclosure
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