Delinquency versus Default
In the financial world, there are various terms used that the average person may not know the definition of, or that they may be entirely unaware of. Frequently used terms that can be used in different ways are “delinquent” and “default.” Understanding these terms will help you discern your financial situation and any ensuing problems.
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Understanding the Terminology
When a person is unable to meet their contractual obligations, such as a loan payment, he or she may be classified as “delinquent.” This term implies a sense of carelessness or recklessness. One may only be considered delinquent for a certain amount of time (determined by the lender). If the borrower fails to correct their error, they will be considered defaulted.
Default gives the lender, or the holder of a mortgage bond, rights and recourse under the mortgage indenture to institute foreclosure proceedings or to accelerate the maturity date.
If you are currently delinquent or in danger of defaulting on your loans or mortgages, you should speak with a New Orleans debt negotiation lawyers of the Law Office of David D. Kervin, Jr., LLC today. Call 504-599-5906 to discuss your case with a professional.