Which is better? Bankruptcy or foreclosure?

[crizznizzle]

I have tried to short sale my town home for the past 4 months and now its down to the point I can not even afford to buy groceries.

I have made the payments best I could and need to be out of this place and its bad memories. So now I am faced with which one is going to hurt more. I have no other debt on my credit and so if I file bankruptcy it would be only be for the house, I am willing to take the hit on my credit if i wouldnt be sued for the difference the bank wont get from them selling it (and forced to pay it back) and if it was just tacked on my credit I can handle it. otherwise i might have to do both. I wish the short sale would happen and I had a buyer but the way the market is it doesnt seem promising.

[bbcpa7]

It may not be an either or. If you file bankruptcy, but do not stay current on the mortgage, the bank will forclose. If the bank forcloses and you still owe, you may have to file bankruptcy to avoid the excess of the mortgage over what the house is worth. A. Like already suggested - take in a renter (if possible). B. If forclosure is otherwise unavoidable - ride that out including living rent free for as long as possible. C. After forclosure - see what the bank does regarding pursuing any deficit. They may choose to leave you alone, which means you would not have to file. You may want to discuss your options with a bankruptcy attorney and a credit counselor (specifically, what are the long term effects going to be).

[Chimel g]

Lots of people think that once they've filed for bankruptcy they will be unable to ever get a loan again, and ultimately they are unable to do anything financial ever again. This isn't true, there are will help to improve your credit history in a number of different ways.

[nigel]

i would look into refinancing to an interest only program or something like that for the time being. you cannot refinance with an open bakruptcy or in foreclosure so you have to act fast. If you do refinance depending on the time it takes the loan to go through will make it possible for you to not have to make any payments for 1 to 3 monthes and give you some time to get things together.