A mortgage loan is an important step that you should only take after considering all the elements involved, such as your needs, your income or your expenses. It is also advisable to keep some money available, as a safety net for difficult times, like unemployment, sickness or other unforeseen events that would require additional expenses, in order to make sure they will not interfere with you mortgage payments. Briefly put, you should do everything in your power to avoid finding out what happens if you can't pay your mortgage.
But if you are already in this situation, things are more difficult and every little thing you do, every phone call you make and every penny you pay can mean a lot.
Usually, the bank only takes action after you miss two or three payments. It is very important that you make the first move and not wait for them to call you. Let them know you have financial problems and try to agree on a new repayment plan, extend your repayment period or even try to get your creditor to lower the interest rates. If you are the one contacting them and you do it respectfully, showing that it is not something you want, but something you are forced to deal with, chances are they will accept your terms.
However, if you hide your problems from your creditor and his attempts to get you back on track are unsuccessful, he will probably let the debt collector solve things the hard way. He will start by calling you at home and at work, by paying you visits and pressurizing you into paying your debts. It might not be too late to settle things at this level, as debt collectors also have the right to negotiate new repayment plans and credit terms.
Hopefully, there will be no need for you to go through the final step, but sometimes it is better to be prepared. Depending on your creditor's policy, on your credit contract and on your state's legislation, the debt collector may proceed directly with foreclosure or file for a lawsuit. I guess there is no need to tell you that, as much as you hate going to court, it is preferable to have the chance to fight for your possessions rather than to have them taken from you, as a compensation for your debts. But hopefully you will solve your problems in time and things will never get to that.
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