If you own a home but are unable to make the mortgage payments, under the terms of the sales contract, the lender has the legal right to commence foreclosure proceedings on your property. The loan papers will usually spell out how much time you will have to bring your house payments current and what the lender can legally do if you don’t.
Most lenders will try to work with you especially if your financial troubles are of a temporary nature. Even if you have lost your job and require additional time to find a new one, most lenders, if you are upfront with them and keep in communication, make some good faith payments, will usually try to work with you rather then having to go through the expense and risk of foreclosure.
Most lenders would much rather have your payments resume rather then having another vacant home in their inventory. In the end, it’s about the money. Here is what one real estate lawyer has to say about the issue:
