Delinquent

What does 'Delinquent' mean

Delinquent is the failure to accomplish what is required by law or duty, such as the failure to make a required payment or to perform a certain action. A delinquent is an individual or corporation with a contractual obligation to make payments against a loan in a timely manner, such as through a mortgage, but payments are not made on time. In the case of a mortgage, the lender can initialize foreclosure proceedings if the mortgage is not brought up to date within a certain amount of time.

BREAKING DOWN 'Delinquent'

The term delinquent commonly refers to a situation where a borrower is late or overdue on a payment, such as income taxes, a mortgage, automobile loan or credit card account. There are consequences for being delinquent, depending on the type, duration and cause of the delinquency. People who are late with a credit card payment may be forced to pay a late fee. Delinquent also refers to the failure to perform a duty or act in a manner expected of a person in a particular profession or situation. For example, a police officer who does not act in a manner to fulfill his or her duty to protect could be found delinquent.

RELATED TERMS
  1. Delinquency Rate

    The percentage of loans within a loan portfolio that have delinquent ...
  2. Delinquent Account

    A credit card balance on which a consumer has failed to make ...
  3. Tax Sale

    The sale of property that results when a taxpayer reaches a certain ...
  4. Serious Delinquency

    When a single-family mortgage is 90 days (or more) past due and ...
  5. Forced Liquidation

    An action taken by brokerage houses that offsets and closes all ...
  6. Reasonableness Standard

    1) A requirement of the Consumer Leasing Act that takes into ...
Related Articles
  1. Personal Finance

    How Credit Card Delinquency Works

    The more you understand about delinquency, the better prepared you'll be to handle it.
  2. Personal Finance

    How Credit Card Delinquency Works

    When you pay less than the minimum monthly payment on your credit cards, you become delinquent.
  3. Investing

    Understanding the Mortgage Payment Structure

    We explain the calculation and payment process as well as the amortization schedule of home loans.
  4. ETFs & Mutual Funds

    The Commercial Mortgage Story Gets Better For Investors

    Things are looking up for loans tied to commercial real estate mortgages. Delinquencies continue to drop, while refinancing opportunities have lowered debt-service coverage ratios. All in all, ...
  5. Personal Finance

    Mortgage Basics: Costs

    By Lisa SmithPeople generally think about a mortgage in terms of the monthly payment. While that payment represents the amount of money needed each month to cover the debt on the property, the ...
  6. Personal Finance

    Understanding The Mortgage Payment Structure

    While a mortgage’s size and term set the baseline, the interest, taxes and insurance all influence the amount of the monthly payment.
  7. Managing Wealth

    The Best Mortgage Deal (May Not Be What You Think)

    Don't judge a mortgage solely by payment amount. Here's what insiders know about choosing the most advantageous mortgage offer.
  8. Personal Finance

    5 Reasons To Save For A Big Mortgage Down Payment

    You may be anxious to buy a home, but taking time to save a large down payment has numerous advantages.
  9. Retirement

    Steps To Retiring With A Reverse Mortgage

    Follow this simple six-step guide to investigating a reverse mortgage. And be sure to compare it to other ways home equity can help fund your retirement.
  10. Personal Finance

    Mortgage Basics: Fixed-Rate Mortgages

    By Lisa SmithA fixed-rate mortgage is a loan that charges a set rate of interest that does not change throughout the life of the loan. It is the traditional loan used to finance the purchase ...
RELATED FAQS
  1. What are the long-term effects of delinquent accounts?

    Find out more about loan delinquency, loan defaults and the long-term consequences of borrowers who are delinquent on their ... Read Answer >>
  2. What is the difference between student loan default and delinquency?

    Learn the differences between simply becoming delinquent on your student loans vs. actually defaulting on your student loan ... Read Answer >>
  3. What is the difference between a PMI (primary mortgage insurance) loan and a Federal ...

    Understand the difference between a conventional mortgage that requires primary mortgage insurance and a Federal Housing ... Read Answer >>
  4. What is PMI, and does everyone need to pay it?

    Also known as "Primary Mortgage Insurance," PMI is the lenders (banks) protection in the event that you default on your primary ... Read Answer >>
  5. How can I avoid paying private mortgage insurance (PMI)?

    Private mortgage insurance (PMI) is an insurance policy that protects lenders from the risk of default and foreclosure, and ... Read Answer >>
  6. Why would a homebuyer need to take out PMI (private mortgage insurance)?

    Learn why some home buyers are required to take out private mortgage insurance (PMI), and how it affects the total monthly ... Read Answer >>
Trading Center