When a borrower defaults on a hard money loan they are in danger of being foreclosed upon and losing the property or properties which they used as collateral to secure the loan. Foreclosure is not the desired course of action for us, as we would much rather prefer to be paid back in full for the balance of the loan without any additional hassle. When a borrower begins to miss payments, we will reach out to them and try to work out a mutually acceptable solution. Foreclosure is the absolute last resort.