Default
If a borrower falls behind in his or her repayments, the mortgage account will fall into default. If the borrower is unable to come to a repayment agreement with the lender or if, following an agreement, the borrower is still in default, the lender may bring a repossession action. Before taking action for repossession, the lender must send the borrower information stating the actions it will take. Most lenders in the U.K. will not begin repossession proceedings until at least three months after you first default on your mortgage payments. An action for repossession will have a major affect on a borrower's credit rating and will adversely affect any future applications for a mortgage or other forms of credit.
In other countries, the rates of default and repossession are low because unqualified buyers are simply less likely to be granted mortgages in the first place. In India, for example, repossession is rare; if a homeowner is at risk, families tend to step in to avoid such an eventuality.
