Can someone please answer which is better Bankruptcy or Foreclosure. I have two houses and due to illness and lost my business I can't pay the mortgage. Should I file for bankruptcy or should I foreclose the properties.. Someone told me that Foreclosure will stay on the credit for 3 yrs but the Bankruptcy will stay for 10 yrs. Please help.

Thanks
Sean

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Originally Posted by snglguyncal73

Can someone please answer which is better Bankruptcy or Foreclosure. I have two houses and due to illness and lost my business I can't pay the mortgage. Should I file for bankruptcy or should I foreclose the properties.. Someone told me that Foreclosure will stay on the credit for 3 yrs but the Bankruptcy will stay for 10 yrs. Please help.

thanks
Sean

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Foreclosure is at least 7 years;
Chapter 7 bankruptcy is 10 year;
Chapter 13 bankruptcy is 7 years from discharge; which means 7 to 12 years;
If you want to buy a house in the future, lenders consider bancruptcy better than foreclosure; you can borrow sooner with bankruptcy than with foreclosure.