Mortgages

One night Ben finds his friend Mike drinking beer outside on the deck of Mike's house. Ben sees that Mike is crying in between taking sips of beer. Ben asks Mike why he looks so sad and Mike replies that he is going to lose his house. He hands Ben a scrunched-up piece of paper. Ben sees that it is a letter from Mike's bank which Mike has granted a mortgage over his home to. The letter says Mike is two weeks behind with his loan repayments.

Ben says "don't worry, you are not going to lose your house tomorrow, you still have time to sort this out."

What is the relevant law in this situation? What are the rights of the parties when the mortgagor is in arrears? What must happen before the bank can sell Mike's house in a mortgagee sale?