Posted by jeff on March 31, 2008 at 08:40:13:
In Reply to: What's worst? posted by Lightwalker on March 27, 2008 at 04:09:15:
hmmmmmmm...im having issues with all this.
you file bk and watch your credit score jump and the borrowing offers hit your mailbox. its just the way it is.
and whether you do a deed in lieu or a full out foreclosure.....its the same on your report. some lenders may report the "in lieu" part, but that doesnt make the foreclosure any better to credit. it still says foreclosure and every other lender will look at it the same. also, 120 days late, whether it forecloses or not, has the same end result during the initial 12 month phase as an all out foreclosure even if youve brought the mortgage current now.
BK guidelines to conforming products are 24 months out, foreclosure guidelines are 36 months out. this is also true for FHA, VA, etc.
im not a credit attorney, but i am a broker and i deal with both of these situations on a daily basis....ask me which one i wanna see on a report when i pull it, im gonan answer BK everytime. i see the foreclosure and start leaning very hard towards a denial even before i hear back from all the lenders. (just for the record, i wouldnt issue the denial prematurely but i can see it coming ahead of time when i see the foreclosure)
also, most lenders wont reissue you another mortgage anytime in the future beyond the 36 months if that foreclosure happeend to be with them directly. youll have to switch to a different lender to do the deal even beyond the 36 months.
both situations are bad, but mortgage lenders prefer BKs over foreclosure every day of the week.
- Problem being... JT-IN 12:22:51 03/31/08 (0)