Will bankruptcy or foreclosure hurt my credit more?

I’m in the process of short selling my home. If i’m unable to short sale I may have to let it fall into foreclosure. Does anyone know how it will effect my credit with a short sale? what would be the difference in the three; short sale, foreclosure and bankruptcy? I know they will all hurt my credit which is the best way to go?

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This entry was posted on Thursday, May 20th, 2010 at 5:44 pm and is filed under Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Will bankruptcy or foreclosure hurt my credit more?”

rusty_266 on May 20th, 2010 at 6:21 pm

Technically bankruptcy would be the worst, but I’m not sure it really matters. The fact is, these days hurting your credit isn’t such a big deal. The whole “Oh no, I filed for bankruptcy and my credit is ruined and I’ll never get a loan again” way of thinking, is a myth. You can get a credit card and car loans, at good rates, immediately after filing for bankruptcy. Think of it this way. If lenders rule out everyone that has bad credit or has recently filed for bankruptcy, or had their home foreclosed on, who’s left to loan money to?