A mortgage is a type of debt, and when it is not paid, it gives the creditor some rights. It is important that you keep up with your mortgage repayments, because it is usually a very significant amount of debt, and not paying could lead to you losing your home.
When you do not pay your mortgage obligations initially, you are not going to have your house taken away from you immediately, nor will the courts become involved straight away. However, your mortgage lender is likely to contact you and demand that you pay your debts as a matter of urgency.
What will happen if I do not pay my mortgage for a prolonged period of time?
If you do not pay your mortgage over a prolonged period of time, it is likely that your creditor will attempt to seize your home.
What should I do if I cannot pay my mortgage obligations?
If you cannot afford the repayments to your mortgage, inaction is the worst thing that you can do. You should contact your creditor immediately and explain to them the situation. Usually, they will want to compromise with you, because it is usually not within their interests to seize your property. Good communication is key, and it may buy you some time, enabling you to sell your property at a good price.
If you are struggling to pay your mortgage and are worried that your property might be seized, it is important that you take action immediately. Taking action can help you to prevent your house from being taken from you.
Source: FindLaw, “Creditors’ Rights and Collection Options,” accessed March 08, 2018