When facing foreclosure, homeowners can become desperate and do things that not only fail to save their home from foreclosure; but that could also further damage their finances. Below are three things that you should never do to save your home from foreclosure:
- Liquidate your retirement account. While it may seem to make sense when you liquidate your retirement account to pay for delinquent payments on your mortgage and avoid foreclosure, what you're really doing to stealing from your future. Retirement accounts are like an insurance policy for your elderly years. When you liquidate a retirement account to avoid foreclosure, you may save your home temporarily but you put your retirement years at risk.
- Sell your paid for vehicle, especially if it is your only source of transportation. Many debtors who have a car that's fully paid for think that by selling the vehicle they can play catch up on their mortgage and void foreclosure. But by selling your vehicle you may make it difficult or impossible to travel to and from work. Even if you are unemployed now, you will need a car to go to interviews and to eventually go to your new job once you find one.
- Sign-up for a foreclosure rescue scheme. Many homeowners facing foreclosure are so desperate to save their home that they will listen to just about anyone claiming to have the power to help them. This is how foreclosure rescue scammers find their victims, they depend on the desperation of homeowners to look past their lies and hand over their hard earned money. Remember, there is only one way to legally stop foreclosure and that's bankruptcy.