This is a commonly asked question. The below is a response from FICO.

“The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all “not paid as agreed” accounts, and considered the same by your FICO® score. This is not to say that these may not be better options for you from a financial perspective, just that they will be considered no better or worse for your FICO score. If you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact to your FICO score. While a foreclosure is a single account that you default on, declaring bankruptcy has the opportunity to affect multiple accounts and therefore has potential to have a greater negative impact on your FICO score.”

If you want your credit analysed to determine which is the best course of action for you. Submit an online inquiry so we can review your credit. The credit review will certainly reveal what is the best course of action, ie: foreclosure, short sale, bankruptcy etc. Our review is mainly for the purpose of determining the affect on your credit and the quickest path to credit recovery.  If you have a recent copy of your credit report, email it to us after you submit your online inquiry. Submit your online inquiry today.