Serious Delinquency

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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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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. Payment Shock

    The risk that a loan's scheduled future periodic payments may ...
  6. Default

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