Credit scores are hurt much more by missing multiple payments - on credit cards, cars and so on - than by a single foreclosure.
Don't forget..these are the people who
trademarked FICO.
Thanks to the Mortgage Debt Relief Act of 2007...Previously, if a bank sold a foreclosed home for less than the mortgage balance and it forgave the difference, the borrower had to pay tax on that difference as if it were income. Now the IRS will ignore it.
Troubled borrowers are walking away from their homes - Feb. 6, 2008
According to the article, you could be able to buy a home again...in 3 years or so. Hey, that's faster than a bankruptcy!