When you default on the mortgage note, the lender begins foreclosure proceedings. Many lenders won't begin foreclosure until you've missed three or more payments--in most states the minimum number of payments that can be missed is controlled by statute.

You can review your state's statutes here. 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 , 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.