credit cards after foreclosure

[larryb]

Hello,
What are the chances of my credit card companies shutting my accounts down after my rental homes go into foreclosure and shows up on my credit rating?

Would the chances be greater for them to remain open if I dont file BK?

Lastly, what would be worse on my credit rating, multiple rental home foreclosures or a BK?

Never been late or missed payment on any of my credit cards and all have low or no balances.

Thanks for your opinion?

[justbroke]

What are the chances of my credit card companies shutting my accounts down after my rental homes go into foreclosure and shows up on my credit rating?

Not likely, if you've been paying them on time. They may, however, jack up your interest rate, reduce your credit line, or both.

Would the chances be greater for them to remain open if I dont file BK?

Much higher chances. If you file BK, they will be closed.

Lastly, what would be worse on my credit rating, multiple rental home foreclosures or a BK?

The BK is better than any foreclosure anyday. This is because items included in BK, like the multiple foreclosures, just show up as IIB (included in bankruptcy). This tends to hurt a lot less... although it will hurt.

[larryb]

Justbroke,
thanks for the answers.

Realistically, how long would the foreclosures significantly hurt my credit. Meaning, being able to get another mortgage or loan in the future as compared to a BK.

I am having a hard time deciding if I should just file BK now or not.

Also, crazy as it sounds I may be starting another business here in the near future. (Fortunatey it doesnt require much capital and I won't need to borrow) So, I have to take this into consideration with my decision...........

larry

[justbroke]

Realistically, how long would the foreclosures significantly hurt my credit. Meaning, being able to get another mortgage or loan in the future as compared to a BK.

A foreclosure hurts a lot more than a BK when it comes to obtaining new mortgages. People in Chapter 13s can get loans in as little as one year while in year. People who were discharged and closed in a Chapter 7, can get new loans as soon as one two years.

A foreclosure can stay on your credit report for 10 years. While you may be able to get a new mortgage with 20% down or more, and 2+ years after a foreclosure... the foreclosure is certainly more painful than the Bankruptcy. I would venture to guess that people who have been foreclosed on outside Bankruptcy, are looking at 4 or more years after the foreclosure to qualify for a new loan. Banks will require greater down payments, and more than 2 years of excellent payment history, for sure.

Just think... people with 700+ credit scores and no foreclosures, late payments, or bankruptcies, can't get loans today.

[relief13035]

Say HELLO to another multiple rental home bk'er - Man it feels good to have those properties off my shoulders.