ALERT

[NEED LEGAL HELP?] Call our 24/7 Helpline: 1-866-723-4855

Serious Delinquency

Definition - What does Serious Delinquency mean?

Serious delinquency is a situation in which payments on a mortgage are ninety days overdue. Serious delinquencies are more extreme versions of regular delinquencies. This can trigger a bank to begin the process of foreclosure. Banks consider serious delinquencies a strong indicator that the borrower may default on loan repayment.

Justipedia explains Serious Delinquency

Delinquency periods, or periods when a loan payment is overdue, are common. Most of the time, the borrower simply pays the payment a bit late, and proceedings continue as normal. However, once a delinquency period extends to a certain point, in this case, ninety days, it means that the bank usually isn't willing to wait anymore. The bank can either foreclose upon the person, or try to negotiate a forbearance, or other repayment option. Foreclosing can be complicated and time consuming for the bank, so alternative options are often desirable.

Connect with us

Justipedia on Linkedin
Justipedia on Linkedin
Tweat cdn.justipedia.com
"Justipedia" on Twitter


'@justipedia_com'
Sign up for Justipedia's Free Newsletter!

Find a Lawyer