Serious Delinquency


DEFINITION of 'Serious Delinquency'

When a single-family mortgage is 90 days (or more) past due and the bank considers the mortgage in danger of default. Once a mortgage is in default, a lender typically initiates foreclosure proceedings.

BREAKING DOWN 'Serious Delinquency'

Borrowers who are delinquent in making their mortgage payments should contact their lender to see what options (other than foreclosure) exist. Foreclosure is time-consuming and expensive for a lender, and in certain situations the lender might offer options other than foreclosure to save themselves time and money. Some of these options include forbearance, deed in lieu of foreclosure, loan modification, or a short refinance.

  1. Foreclosure - FCL

    A situation in which a homeowner is unable to make principal ...
  2. Delinquent Mortgage

    A mortgage for which the borrower has failed to make payments ...
  3. Workout Agreement

    A mutual agreement between a lender and borrower to renegotiate ...
  4. Mortgage Forbearance Agreement

    An agreement made between a mortgage lender and delinquent borrower ...
  5. Default

    1. The failure to promptly pay interest or principal when due. ...
  6. Payment Shock

    The risk that a loan's scheduled future periodic payments may ...
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    Unlike subprime mortgages issued by some conventional commercial lenders, Federal Housing Administration (FHA) loans do not ... Read Full Answer >>
  2. Can FHA loans be refinanced?

    Federal Housing Administration (FHA) loans can be refinanced in several ways. According to the U.S. Department of Housing ... Read Full Answer >>
  3. Can FHA loans be used for investment property?

    Federal Housing Administration (FHA) loans were created to promote homeownership. These loans have lower down payment requirements ... Read Full Answer >>
  4. Do FHA loans have private mortgage insurance (PMI)?

    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>
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    Generally, the Federal Housing Administration (FHA) does not insure more than one mortgage per borrower. This is to prevent ... Read Full Answer >>
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