Delinquent Loan. A loan which is an active loan (in Repayment phase), which is in default.
Issues and Challenges
Possible outcomes including settlement where the loan is not paid off in full but a settlement is arrived at in which this is considered to be closed. Legal Proceedings may undertaken be in relation to Loan Defaults. Default versus Arrears? There are states within the space of being in arrears where it is not yet in default unless the borrower has not paid within a given period of time. For instance a decision is made after e.g. 3 months, when it is decided they are in default - a "Notice of Default" is then served, leading into the set of legal events we see in the Loan Default Proceedings.
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