As with any other type of homeownership, both mortgages and mortgage defaults are an unfortunate reality in CLTs. However, CLTs typically require use of a standard mortgage with specific requirements in the event of default. Under the standard mortgage, lenders must give the CLT notice when a resident defaults on their mortgage and provide an opportunity for the CLT to resolve the default. For properties that proceed to foreclosure, the CLT has an opportunity to purchase the foreclosed building. Foreclosure does not affect the ownership of the land, which always remains in the hands of the CLT.