Re: bk vs foreclosure which is worst
Posted by Jim V on September 09, 2002 at 18:04:14:
In Reply to: bk vs foreclosure which is best posted by Sheela on September 07, 2002 at 01:18:45:
Sheela,
If I was to take a guess, I'd say foreclosure is worse from a credit perspective. Either action could trigger the closing of any available credit you may have left on your cards.
For obtaining new credit(home loans), most lenders will want to see two years of re-established credit after a BK, three years after a foreclosure. BK stays on your credit report for 10 years, foreclosure stays for 7 years.
The problem, as I see it, with keeping credit cards open is that assuming you will have some cost for housing, add the cost of maintaining the credit card accounts and the total might be close to your existing house payment. Better in that situation to eliminate the card debt through BK and keep the property.
Just an opinion, hope it helps.
: lost job, will recover, can't afford house payment, can afford CC payments, which affects you worse foreclosure or bankruptcy, can i save some credit by paying and keeping the cc's. Read alot of people still get foreclosed on even using bankruptcy. How does one affect credit report vs. the other?
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Comments:: Sheela,: If I was to take a guess, I'd say foreclosure is worse from a credit perspective. Either action could trigger the closing of any available credit you may have left on your cards.: For obtaining new credit(home loans), most lenders will want to see two years of re-established credit after a BK, three years after a foreclosure. BK stays on your credit report for 10 years, foreclosure stays for 7 years.: The problem, as I see it, with keeping credit cards open is that assuming you will have some cost for housing, add the cost of maintaining the credit card accounts and the total might be close to your existing house payment. Better in that situation to eliminate the card debt through BK and keep the property.: Just an opinion, hope it helps.: : lost job, will recover, can't afford house payment, can afford CC payments, which affects you worse foreclosure or bankruptcy, can i save some credit by paying and keeping the cc's. Read alot of people still get foreclosed on even using bankruptcy. How does one affect credit report vs. the other?Optional Link URL : Link Title :