Without a doubt a property foreclosure is one of the most damaging events in terms of credit history, when you become a borrower.
Talking to your lender who holds the mortgage note on the property might provide specific answers as to the possibility of avoiding a foreclosure, as well as the effects that action might have on your credit.
In terms of the effect on credit history, a deed in lieu of foreclosure, or a short sale, are not as adverse an event as is forced forclosure.
If you do go into forclosure you will have many obstacles to overcome which will effect your borrowing power for seven to ten years.
The possibility of refinancing after a bankruptcy is usually very difficult to do. If you have been struggling but keeping current on your payments, the lender may be accommodating. You first need to contact them and explain your situation. They may suggest, or perhaps you can suggest, a way to work out alternative payments until you recover.
Contact us, we can help guide you through your time of need.
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