This is a legitimate risk in the mortgage business and should be taken seriously. It is not uncommon for borrowers to default on loans and the lender to foreclose on properties. Depending on the state and situation, the foreclosure process can take just a few months or even a few years. Investors should be aware that no distributions will be made while a loan is non-paying or in default and capital infusions may be necessary to pay for legal and carry costs. Fortunately, being in a debt position is the most secure position in the capital stack and typically gets paid back in full.