Remove Bankruptcy and Foreclosure

Know the Difference

Bankruptcies and foreclosures have something in common. They both have a negative impact on your credit report. But how are they different? Filing for bankruptcy is asking for a permit to be discharged from your debts or having a payment plan to finish paying your debts.

Foreclosure, on the other hand, lets the mortgage lender recoup their payments by selling the house used as collateral to satisfy the loan owed to them. This doesn’t mean that all debts will be paid with foreclosure. If there is still a balance remaining, you will need to pay it out of your pockets. At Londyn’s Financial Services, we’ll show the effects of foreclosure and bankruptcy on credit report. Call us now for free credit analysis!

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The Impact of Bankruptcy on Credit Report

Filing for bankruptcy is a huge deal for everyone. Unfortunately, it can affect your credit report negatively. How big the impact depends on several factors. Those who have good credit standing can see a huge decline in their numbers after filing for bankruptcy. On the other hand, those whose credit scores are below the minimum will see a small decline in their credit score. Knowing how this financial event affects your credit standing is a must as your future depends on it too.

Don’t Let Bankruptcy and Foreclosure be the End

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Foreclosure vs Short Sale

The good news is that there are other options to consider aside from foreclosure. Among these are short sales as well as deeds-in-lieu of foreclosure. Keep in mind that not all of the alternatives are considered “paid as agreed” accounts. What this means is that their impact on your credit score will vary. Talk to our expert on Texas foreclosures to know if this is the best path to take or if there is an alternative.

Keep in mind that filing for bankruptcy has a much bigger impact on your credit score compared to a foreclosure. One reason behind this is that a foreclosure is limited to just one account. However, filing for bankruptcy can have a ripple effect on several of your active accounts.

With Londyn’s Financial Services LLC, we will share our expertise regarding foreclosure and bankruptcy credit score. It doesn’t matter if you already filed before or are thinking of doing it right now, we are here to help. Filing for bankruptcy or foreclosure is a huge financial decision. Don’t make it without having the right information on your hands. Let our foreclosure and bankruptcy Texas guide you.