The question of foreclosure vs bankruptcy which is worse is the one homeowners are confronted with after being given a notice of default. The answer, as usual, is that both are worse. However, they fall into different categories, and it depends on the situation. In order to decide which is worse, you need to learn more information about it on merrickgarlandproject.com, and then decide.
If you are in the process of losing your home to foreclosure, you should consider filing for bankruptcy to stop the process. Filing for bankruptcy does not necessarily mean that you are finished with paying off your debts. However, once you file for Chapter 7 bankruptcy, all of your debts are discharged and you become ineligible to file again for loans for three years. Although this will give you peace of mind because your debts are behind you, it does not alleviate your responsibility to pay your loans back. Because of this, you should carefully consider if a bankruptcy filing is right for you.
Most people who file for bankruptcy protection have their credit score lowered slightly because of the filings.You should rethink twice in deciding which is worse foreclosure or bankruptcy in your situation. It is not the end of the world, and you can get your credit score raised again once you pay off your debts. On the other hand, filing for protection will most likely change your credit report for the next seven years. If you have not maintained steady payments on your house payments, you will have a very difficult time raising your credit score. Also, your foreclosure and bankruptcy filings remain on your credit report. If your credit score drops as a result of filing for protection, consider waiting until you have raised your credit score again before trying to re-establish your mortgage.
Do you have sufficient income and resources to make regular monthly payments? Do you have a good enough paying job that your income covers your expenses? If you do not have a stable lifestyle, filing for chapter 13 after foreclosure sale is not the best plan of action. Instead, look to either refinance your mortgage plan to more manageable terms.
In every case, Chapter 7 of the bankruptcy code provides the same protections for homeowners as do other forms of bankruptcy. The mortgage company will not be allowed to repossess your home without court permission. But, if a homeowner has filed for bankruptcy protection and has been discharged, he or she may still be eligible for a hearing.
If you file chapter 7 bankruptcy and foreclosure, you will probably be able to stop foreclosure. Chapter 7 protects your right to make payments on your mortgage after bankruptcy and foreclosure. As long as you have enough money to make the mortgage payments, the court is more likely to agree with your settlement offer. But if you cannot pay, you may have to file chapter 13 bankruptcy, which will give you a discharge. Or, you can ask the lender to negotiate new terms.
Some homeowners may be able to save their homes from foreclosure by filing a 'short sale'. This action does not bar them from filing a subsequent lawsuit against the mortgage company. But it does mean that a foreclosure sale can proceed. At this point in time, it is important to remember that neither the mortgage company nor any foreclosure lawsuit entity has any obligation to take you seriously. You must provide your lender a foreclosure complaint that includes all of your financial information.
Chapter 7 bankruptcy and foreclosure does not affect your credit score, in most cases. The only real issue is that it does make you ineligible for certain types of credit. Depending on what kind of financial problems you've experienced, you could have difficulty securing a loan until several months or even years after filing your bankruptcy.
There are several reasons why a foreclosure credit report can be maintained for a limited period. The most important thing here is that a borrower wants to catch up with his/her mortgage payments. A lot of knowledge and time is needed to make your way out of the financial problem. Hence, there are very few options available that will help you overcome your financial problem.
To know what is the best option to remove that from your foreclosure credit report, you must first understand what is causing such a report to be maintained. This is done by knowing why the foreclosure occurred in the first place. If the borrower was behind the payments on monthly payments, there is a big possibility that the buyer of your house or apartment decided to purchase your home from a sale arranged by the lender. If the borrower made his payments on time, there is a big chance that the buyer of the house decided to purchase it at the price fixed by the lender and sold it to a third party at an even higher price.
These two scenarios are very unlikely to occur, so there is no need to worry. Your credit score will be negatively affected, even if you have gone through months with a good credit repair company. The reason for this is that the bad credit repair company caused more harm than good to your report. The number of negative items recorded on your report is proportional to the number of months with a good credit repair company. If you had been paying your debts on time for a month or two and the lender sold your property, you would be adding several negative items to your report. But if you have gone through months with a good credit repair company, only one or two items will be recorded.
In the end, trying to get credit after foreclosure just doesn't make sense at all. First, you are hurting yourself. Secondly, your debts will stay on your credit report for 10 years from the date of your purchase. So, it’s always important to know which is worse - foreclosure or bankruptcy. Mainly because you cannot turn that around. It is far better to find another way out of this mess.