When times are tough, it can seem impossible to keep up with all your bills. However, if you don’t make your monthly mortgage payments, you risk facing mortgage default and potentially losing your house.

Such events are catastrophic but can be prevented if you know the appropriate steps to take. Let’s learn more about what defaulting on a mortgage means and how you can avoid doing so to protect your home, finances, and equity.

Defaulting on your loan and losing your home is a scary prospect. However, the foreclosure process doesn’t happen overnight. Even if you’re experiencing financial hardship, there are multiple ways that you can avoid defaulting on your mortgage.

If you have not yet defaulted, see if you can qualify for a refinance. When you refinance, your existing mortgage gets paid off and replaced with a new loan that has new terms.

The thought of defaulting on your home loan can be terrifying, but don’t let it prevent you from taking action. Even if your monthly payment is already past due, you can still take steps to avoid foreclosure. Contact your lender as soon as you realize you may be in danger of missing a payment, and they will help you find a solution.