What Is Arrearage?
Well arrearage is just simply a term that means the amount of your mortgage that’s in default, and that just means the amount of unpaid mortgage payments.
Let’s say that you had a mortgage payment of $1,000 a month, and you had missed three months of payments. Well, your arrearage is $3,000.
Now the arrearage can be more if you get so far behind that the mortgage company sends it to an attorney – for collection, let’s say. Well, the attorney is going to add his fee to it, so a $3,000 arrearage becomes a $4,000 arrearage, plus other costs that might be added – interest and so forth. So it can add up pretty quickly.
But arrearage, just to sum it up, just means the amount that you’re behind on your mortgage.
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