If you are unable to make a mortgage payment, then the lender can begin the process of foreclosing on your house. When you borrow money to purchase a home, your loan is referred to as a "secured" loan because it involves an asset that secures the lender's interest. In this way, a mortgage differs from other forms of loans or credit. That asset, or the "collateral", is the house. As such, if you are unable to make payments on the loan as promised, the lender can take your house.
Can my house go into foreclosure if I make a late mortgage payment?
The exact rules for foreclosure vary slightly by state. For example, in some jurisdictions a judicial foreclosure is required and the lender must go to court to get a foreclosure judgment against you before he can take your house. In other jurisdictions the lender is able to follow a different process, called a non-judicial foreclosure, and simply send you a bill of sale or notice of sale and sell your home at auction if you don't pay. Some states allow lenders to pursue you for a "deficiency judgment" if the sale of your home at a foreclosure auction doesn't generate enough cash to pay off the full balance you owe.
Losing your home to foreclosure can be a devastating process. However, rest assured that a lender isn't going to foreclose on your house for one missed payment. From the time you first receive a notice of default when you miss a payment to the time when your lender actually foreclosures, several months may sometimes pass. You may also be able to talk to your lender to negotiate a better option than foreclosure if you know you are going to have a hard time making payments. Lenders don't usually want to foreclose any more than you want to lose a house, and may be open to alternatives like renegotiating the loan or arranging a short sale.
If you are served with a notice of foreclosure, the best thing to do is to talk to a lawyer who specializes in foreclosures to find out exactly what your options are.