What's Worse BK or Foreclosure?

[Anonymous]

What is worse for your credit score?  Foreclosure or BK?

Just asking/

[fused]

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myhearts07 wrote:

What is worse for your credit score?  Foreclosure or BK?

Just asking/

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BK!

[Anonymous]

Im guessing BK because Foreclosure didn't hurt me much

Message Edited by HappyDays on 07-14-2007 08:01 PM

[Anonymous]

In my opinion... they'll both do harm in seperate ways. Ofcourse the BK will hurt your score, but for how long? I've seen examples of people who have a 700 score just 6-12 months out of BK's, but it's a dark road getting there.

A foreclosure may not devastate your total credit picture or your score short-term as much as a BK, but it depends on what your "credit needs" are after the foreclosure. Your "morgage" score (skewed by mortgage lenders) will take a serious dive for a while, and you might have a real tough time getting a mortgage and if you do, the rates will likely be punitive.

Whatever your situation is, study ALL your options before you leap. Good luck.

[Anonymous]

Thanks..

[Anonymous]

I'm currentlly about 6 mo. in the foreclosure process and my credit has dropped a 150+ points. I went from the high 680-700 range to the 530 range.

[Anonymous]

I would say that over the long haul, the BK hurts worse. In my case, I had both. I filed for BK and to be able to qualify, my lawyer said I needed to include the house (which I couldn't afford to keep on my own anyway).  Bottom line is, the foreclosure will drop off my CR next year, but the BK will stay for another 3 years after that. For what it's worth, my score are in the low 700's now, so that shows that your credit CAN be repaired over time. Keep your head up, it's gets better.