All I hear from other Realtors is them telling their clients facing foreclosure not to file bankruptcy.  Usually they use future credit as the reason.  That's hogwash a foreclosure causes almost as much damage to a credit score.  Then after the short fails the agents pulls the listing and the seller moves out and the home goes into foreclosure. 

This attitude and direction is a big mistake, even the lenders would agree.

Lenders want the homes protected, winterized and kept up, when someone walks this does not happen, pipes freeze the grass goes uncut etc. Lenders understand bankruptcy and know how to work with it.

When an individual files for bankruptcy it gives them time to work things out.  They stay in their home and are afforded the opportunity to work out a plan to repay the lender over time.  If they are unable to work out a mutually benefical plan they get  to move out in an orderly fashion and the lenders gets proper notice about the move and a real chance to protect the asset.

If you are an owner and are facing foreclosure bankruptcy is a viable option that may help you keep your home.  If you reside in the Dutchess County New York area please contact me for a referral to a few of our local experts that will not lie and pick your pockets.  Contact me at http://www.247reorealty.com/

Here is a link to the US Bankruptcy Court for the Sourthern District of NY http://www.nysb.uscourts.gov/

BANKRUPTCY is not a bad word!