What Is a Delinquent Mortgage?
A delinquent mortgage is a home loan for which the debtor has collapsed to make payments as required in the loan documents. A mortgage is deemed delinquent or late when a planned payment is not forced on or before the due date. If the borrower can’t bring the payments on a delinquent mortgage current within a certain time, the lender may begin foreclosure proceedings. A lender may also offer a borrower several options to help avoid foreclosure when a mortgage turns out to be delinquent.
Understanding Delinquent Mortgages
A delinquent mortgage can lead to foreclosure, but foreclosure is a last possibility for lenders as it is a costly procedure and lenders typically drop money in foreclosure prosecutions. A forbearance deal is a prospective alternative to foreclosure if the borrower’s financial difficulties are short-term. Under a forbearance agreement, the lender temporarily allows the borrower to cease making payments or to pay less than the usual monthly expense.