Non-Performing Loan (NPL)
A non-performing loan is a mortgage where payments are 90+ days overdue, representing significant credit deterioration and triggering lender remedial actions including foreclosure proceedings.
| Classification Timeline | Status |
| 1-29 days overdue | Current with late fee |
| 30-89 days overdue | Delinquent, warning stage |
| 90+ days overdue | Non-performing |
| 180+ days overdue | Severe default, foreclosure likely |
| Lender Actions | Response |
| 30 days | Reminder notices |
| 60 days | Formal demand letter |
| 90 days | NPL classification, legal notice |
| 120 days | Foreclosure proceedings initiated |
| 180 days | Court action commenced |
| Borrower Consequences | Impact |
| Credit score | Severe damage, 150-200 point drop |
| Late fees | 1-3% of overdue amount |
| Legal costs | Added to debt |
| Property seizure | Foreclosure and forced sale |
| Future borrowing | Blocked for 5+ years |
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