Foreclosure and Bankruptcy is same same or different and how it influence for owner.

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Originally Posted by Sergiog

Forclosure and Bankruptcy is same same or different and how it influence for owner.

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Foreclosure is when the bank/mortgage company regains ownership of a property because the agreed upon payments have not been kept up to date. The borrower loses the property and if the property cannot be sold for enough to pay the outstanding balance on the loan the borrower may still be held liable for it. It is very damaging to one's credit.

Bankruptcy is when a person declares that the amount of their debts is greater than the amount of their assets and therefore they cannot pay their debts. There are different types of bankruptcy, with different levels of responsibility for the person declaring it. Bankruptcy is also very damaging to one's credit, although the type of bankruptcy you file can make a difference.

Foreclosure deals specifically with one property. Bankruptcy deals with the total financial picture of an individual.

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