MORTGAGE ARREARS Meaning and
Definition
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Mortgage arrears refer to the amount of money that the borrower owes to the lender when they fail to make the scheduled payments on their mortgage loan. It is the outstanding or overdue balance that has accumulated over time due to missed or late payments.
When a borrower falls behind on their mortgage payments, they are said to be in mortgage arrears. These arrears can occur for various reasons, including financial hardship, job loss, unexpected expenses, or mismanagement of personal finances. The arrears start accumulating after the due date of the missed payment and continue to increase until cleared.
Mortgage arrears can have serious consequences for the borrower, including damaged credit scores, the risk of foreclosure, and potential legal action by the lender. It is essential for borrowers facing arrears to communicate with their lender as soon as possible to explore options for repayment or other alternatives to avoid further financial difficulties.
Lenders may offer repayment plans, extending the loan term, or modifying the mortgage agreement to help borrowers catch up on their arrears. It is crucial for borrowers to understand the terms and conditions regarding arrears and seek professional advice if needed to navigate through this difficult situation and find the best solution for their financial circumstances.
Common Misspellings for MORTGAGE ARREARS
- nortgage arrears
- kortgage arrears
- jortgage arrears
- mirtgage arrears
- mkrtgage arrears
- mlrtgage arrears
- mprtgage arrears
- m0rtgage arrears
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- moetgage arrears
- modtgage arrears
- moftgage arrears
- mottgage arrears
- mo5tgage arrears
- mo4tgage arrears
- morrgage arrears
- morfgage arrears
- morggage arrears
- morygage arrears
- mor6gage arrears
Etymology of MORTGAGE ARREARS
The word "mortgage" comes from the Latin word "mortuus", which means "dead". In medieval Latin, the term "mortuum vadium" referred to a dead pledge. The word "arrears" comes from the Middle English word "arere", meaning "behind". It is derived from the Old French word "arere" or "arrear", which also means "behind". The combination of these two words, "mortgage arrears", implies a situation where the borrower has fallen behind on their mortgage payments.
