Definition of Serious delinquency:
A serious delinquency is 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. A past-due mortgage is considered a sign to the lender that the mortgage is at high risk for defaulting.
In some cases, those who are in a serious delinquency can work with their lender to work out a compliancy plan. 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.
Situation in which a mortgage payment is 90 days or more past due. A bank considers a serious delinquency an indication that a mortgage is in danger of default.
Meaning of Serious delinquency & Serious delinquency Definition