Foreclosure

I'm filing Chapter 7 in Minnesota. Does this stop me from buying a house within the next 6 months? I have been late on one house payment in the last 12 years.

If I foreclose on my current house due to numerous loans against it, does that complicate buying another house?

Is it better not to foreclose or is Chapter 7 and foreclosure viewed as the same and lumped into one category?

Yes, Yes.

It will be difficult to buy anything. First if you file BK it will take atleast 3-4 mos for it to be discharged. Second, it will show up on your credit report as a bankruptcy. Third, it takes upwards to 2 years to be able to qualify for a mortgage after bankruptcy. Fourthly, no creditors are going to care what your payment history was, they are looking at your current credit worthiness.

Are you better off trying to keep home? Yes.

Foreclosure? If you let it in foreclosure, whatever the bank gets at sale, you will still be responsible for remaining balance of debt. Of course you can let it foreclose and then file BK, but you will not likely be able to buy again for 2 years.

I recommend you consult an attorney in your area to see what your options are.

Oh, and if you foreclose, it will still go on your credit report as such.