Delinquent Loans

Mortgage Delinquency is a term used in the real estate industry referring to when borrowers on a mortgage loan are at least 30 days overdue on making at least one or more required mortgage payments.

Once a mortgage loan becomes behind in payments for 30 days or more, the mortgage servicer is required to report the loan as delinquent to the credit bureaus. Additionally, the mortgage servicer will include all 1-4 unit residential properties that are 30 days or more past due, but not in foreclosure, within the company’s delinquency rate.

The delinquency rate is a key metric that all mortgage companies and investors use to assess the credit risk of their borrowers as well as the company’s overall loan portfolio. A high delinquency rate can have a negative impact on the company’s financial performance.

So, if your company’s mortgage delinquency rate is reporting higher than your company has an appetite for, let Royal American Financial sell a group of those delinquent loans on your behalf. A sale of delinquent loans thru the Secondary Market could result in an improved delinquency rate plus extra operating cash to close more mortgage loans. Win-Win!!

Contact Royal American Financial today to discuss your options!