When you default on the mortgage note, the lender begins foreclosure proceedings.
The most serious default is failing to make the house payment.

Other defaults include:

• Failure to pay property taxes.
• Obtaining a second mortgage without permission on a house that is not your principal residence.

There are two immediate consequences of default that are stipulated in almost every promissory note. They are:

• The lender calls the loan by invoking the acceleration clause (see glossary), making the entire loan amount immediately due and payable.
• The lender can add late charges and other fees.

The lender is required to give you notice that its charging you a penalty for making a late payment.

If you don't immediately catch up on your mortgage payments, you receive a Notice of Default.