What is more damging to a credit report ... foreclosure or bankruptcy?

Foreclosure.

foreclosure... means you didn楹搕 pay your debts

bankruptcy .... means you COULDN楹揟 pay your debts...

there楹搒 a huge difference....

What is more damging to a credit report ... foreclosure or bankruptcy?

I think they are equally damaging. In either case there is an indication that debt cannot be paid.

If there were degrees of damage. I would think bankruptcy is worst. Because with a mortgage - if the property values plummeted to a point where it is not worth paying a mortgage - example - mortgage amount is much greater than property value then it might make sense to walk away from the property. I don%26#039;t encourage this because a borrower is still on the hook for any money not recovered from a foreclosure sale.

What is more damging to a credit report ... foreclosure or bankruptcy?

Least damaging: Sell the house before you get foreclosed.