When you miss a mortgage payment, several things must happen before you are forced out of your home. There are many chances during this process to get up to speed on your mortgage, so that one missed payment does no turn into a foreclosure.

Default

The first thing that must happen in the foreclosure process is default. Default usually does not happen after one payment has been missed, according to John W. Schoen of MSNBC; but many times happens after three payments have been missed. You will have the opportunity to become current on your payments during this time and avoid the foreclosure process.

Pre-Foreclosure

After your lender files a notice of default, you will be in the pre-foreclosure stage. During this time your lender is going through the legal steps to put your home up for auction, according to Debt Workout. If you can get the money together, your lender may still be willing to let you make up missed payments and get your home out of foreclosure.

Foreclosure

After the home has been sold, the new buyer will want you to leave immediately, but may have to go through legal processes to force you out, according to Debt Workout.

Alternatives

Other alternatives to missing your mortgage payments are an interest-rate freeze, loan modification, payment plan to make up your missed balance or to refinance, according to Schoen. Talk to your lender about these options and see if it will work with you.

Prevention/Solution

If you know that you can't keep up your mortgage payments, your best option may be to sell your home before your lender has the opportunity to foreclose on you, according to Schoen. This will save your credit rating and maybe give you a little cash, if you had equity in your home.

Source:

MSNBC: What If I Can't Pay My Mortgage?

Debt Workout: Foreclosure FAQ