Posted on: 20th Mar, 2010 02:34 pm
which one hurts your credit more, bankruptcy or deed in lieu of foreclosure?
Hi drifter,
A deed in lieu of foreclosure reduces your credit score by 250 points, stays in your credit report for 7 years and you are not liable for the deficient balance resulting from the sale. Bankruptcy, on the other hand, stays in your credit report for 7-10 years and reduces your credit score by 200-250 points. Moreover, your assets are sold off to pay your creditors in case of bankruptcy. In my opinion, a deed in lieu of foreclosure is a better option compared to bankruptcy in case you want to get rid of the property.
A deed in lieu of foreclosure reduces your credit score by 250 points, stays in your credit report for 7 years and you are not liable for the deficient balance resulting from the sale. Bankruptcy, on the other hand, stays in your credit report for 7-10 years and reduces your credit score by 200-250 points. Moreover, your assets are sold off to pay your creditors in case of bankruptcy. In my opinion, a deed in lieu of foreclosure is a better option compared to bankruptcy in case you want to get rid of the property.
thanks for the info