Serious Delinquency

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DEFINITION

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

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 and/or interest ...
  2. Delinquent Mortgage

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

    A mutual agreement between a lender and borrower to renegotiate terms on a loan ...
  4. Default

    1. The failure to promptly pay interest or principal when due. Default occurs ...
  5. Payment Shock

    The risk that a loan's scheduled future periodic payments may increase substantially. ...
  6. Mortgage Forbearance Agreement

    An agreement made between a mortgage lender and delinquent borrower in which ...
  7. Deed In Lieu Of Foreclosure

    A potential option taken by a mortgagor (a borrower) to avoid foreclosure under ...
  8. Forbearance

    A temporary postponement of mortgage payments.
  9. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes the monthly loan ...
  10. Multibank Holding Company

    A company that owns or controls two or more banks. Mutlibank holding companies ...
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