There are many reasons as to why a person can default on their monthly mortgage payments and some of them are really serious one. However, as a home owner who has taken a mortgage to buy a home, you should be aware of what can happen if you fail to make you mortgage payments on time.

Failing to make mortgage payments, will result in the lender sending a notice or letters on your defaults. If you ignore them your situation can become more complicated. So, it would be better to call up the lender, and explain your financial situation to them. Keep with you information about your monthly income and expenses because a lender will need to see this.

If you fail to make mortgage payments for more than 90 days the lender can take hold of your property and put it up for sale. In such a situation you lose your home and whatever payments you had made so far also go to waste.

However, if you explain your situation to them before the situation gets out of control many lenders will accept to let you keep your home. You will, of course have to agree to make payments according to a new schedule. This is required to help you catch up on payments. So you should take steps to do this as soon as possible.

You can try credit counseling, which can be of great help in sorting matters out. Such services are offered free of charge by your local housing counseling agency.