You just got a letter that says the mortgage is in default and the lender may start court action if the missed payments are not cured. That usually means the foreclosure process has begun or is about to begin. The foreclosure process is the legal path a lender uses to take and sell real property after a borrower fails to meet the mortgage terms, most often by missing payments. It usually involves notice, an opportunity to catch up, formal legal filings or trustee action, and a sale of the property to repay the debt. The exact steps depend on state law and the language in the mortgage, promissory note, and any default or acceleration provisions.

In practical terms, the process affects whether a homeowner can keep the property, reinstate the loan, negotiate a loan modification, or face a forced sale. It can also damage credit and lead to disputes over the sale price, fees, or who has the right to enforce the loan. In South Carolina, foreclosure is generally judicial foreclosure, meaning the lender usually must file a court case rather than complete the sale privately.

For an injury claim, foreclosure often becomes urgent when lost wages or medical bills make mortgage payments fall behind. A pending settlement may help, but timing matters. If a home is sold before funds arrive, the owner may lose equity or bargaining power. A lawyer handling a personal injury case may need to coordinate with the foreclosure timeline, especially because South Carolina's statute of limitations for most personal injury claims is three years under S.C. Code § 15-3-530.