The short answer is, "YES."
The lenders apply delinquent payments to the oldest payment due and delinquent interest (banks charge interest on delinquent interest). Lenders take all of the money they can get from Borrowers, but that does not mean that they will not taken action against you - - you have reported to the credit reporting agencies as missing 3 payments. You should contact your lender to explain why you are delinquent. Perhaps you can qualify for a loan modification. You should definitely ask for a loan modification.
If your finding that your going to be in trouble again shortly and possibly be in default again then consider, and I mean just consider listing it for sale before they just take it away.
For the record, I want you to be assured that your are not alone, the number of folks in your exact position is staggering - do what you can and make clear attemptt to give your lender something each week if possible, intent is huge and they work with you even more if you show effort.
If you need me for anything, just call or email.
If you think you may be heading for foreclosure call me - I can stop it in most cases with the intent to sell. It will save your credit and, who knows, maybe put some cash into your pocket.
Do not give up, I will be here if you need anything, really - just call, advise is still free.
Century 21 Northshore