Definition
Arrears or arrearages are debts which have overdue payments.
Analysis
A mortgage that is in arrears has not been paid according to the terms of the contract. Any delinquent payments must be made up in order to restore the loan to current status.
Homeowners may catch up on their payments by making accelerated payments, or they may need to make alternative arrangements. Housing counselors are able to help distressed homeowners with a number of loss mitigation alternatives that can help resolve the delinquency.
