It is most usual for loan seekers not to worry about foreclosures at the time of asking for mortgage loans. Yet, you may miss paying monthly instalments due bad financial planning or there may be a financial disaster in your life. This leads to foreclosure and you stand the risk of losing your home.
You should understand that your money lender, usually the bank, isn’t really keen to get your home as it is more profitable for the bank if you keep living in your home. When you are unable to pay three consecutive instalments to your lender, your lender will send you a late notice. If you are unable to make additional payments too, the lender will contact you on phone or in writing. If you fail to respond and continue missing payments, or avoid the lender, the latter would demand faster payment, meaning you are asked to pay all the dues including the amount borrowed, late charges plus legal fees. At this juncture, the lender won’t accept any alternate arrangement that you may put forward.