What is the term used to describe the failure to make mortgage payments on time?

The correct answer is "Delinquency." This term specifically refers to the situation where a borrower fails to make mortgage payments by the due date, leading to being overdue on those payments. Delinquency typically indicates that the borrower is behind on their payment schedule, which can result in penalties, increased interest rates, or eventually foreclosure if the issue is not resolved.

"Default" is often used in a similar context, but it denotes a more severe stage. Default typically occurs when a debtor fails to make required payments over an extended period, often after several months of delinquency, leading to potential legal action by the lender.

"Repercussion" generally refers to the consequences of an action, but it does not define the status of failing to make payments. It describes what might happen as a result of delinquency or default rather than the act itself.

"Indebtedness" simply denotes the state of being in debt, which can apply to various financial obligations, not specifically the late payment of a mortgage. It lacks the specific connotation of timeliness regarding the payments.

Understanding these distinctions helps clarify the nuances in financial terminology, particularly in real estate and lending contexts.