Track 25 of 25

When payments slip

The delinquency clock, charge-offs, why a car is taken in weeks and a house in months, and six public episodes. Capacity, a line and a clock, on the loans already running.

25 lessons

Mark a lesson complete and it is remembered here.

The delinquency clock starts on the missed due dateThe delinquency clock starts on the missed due date, not on the day the miss is noticed.7 min
What 30 days typically triggersA thirty-day bucket is the first failed test, and the late fee is a share of one installment.7 min
What 60 days typically triggersSixty days is a second failed test, often the point a spread is revised on the same balance.6 min
What 90 days typically triggersNinety days is one label on three recovery clocks, and those clocks are already running.7 min
Late fees as arithmeticA late fee joins the balance, so the rate then accrues on a larger principal.6 min
Penalty rates: how APR steps upA penalty rate is a spread revision on the same person after a clocked test fails.6 min
What reaches a credit reportA reported late is a mark the next lender will use as a haircut on a person.6 min
How long a reported item commonly remainsA reporting window is a clock that outlasts the cure, a different event from the miss itself.7 min
Charge-offs, mechanicallyA charge-off is an accounting write-down, and the same dollars can still be owed.7 min
How collection works, mechanicallyA sold charged-off account is a claim that changed hands, priced from recovery versus a cheap basis.6 min
Why a car can be taken quicklyA car can be taken in weeks because the collateral is movable, titled and saleable.7 min
Why a house takes monthsA house takes months because the collateral is a home, and the clock is still a margin call.7 min
Settlement mechanicsSettlement is a discounted recovery of a claim, not a vanished balance and not a recommendation.6 min
Forgiven debt and the tax questionForgiven debt can be a tax characterization of a vanished balance, which is not the same as cash.7 min
Bankruptcy as a legal clock, not a recommendationBankruptcy is a court-run clock that pauses most collection, and it is not a recommendation.7 min
Chapter 7, at a purely mechanical levelChapter 7 is a forced sale of what the rules do not exempt, then a possible discharge.7 min
Chapter 13, at a purely mechanical levelChapter 13 is a court-set installment against a household, a scheduled recovery of part of the balance.7 min
Payment shock on option ARMs, 2007An option-ARM recast is an ordinary reset on a principal that grew, and the jump is arithmetic.7 min
The 2008–2010 US foreclosure wave, as a sequenceNegative equity plus a missed payment is LTV above one hundred plus a failed cash-date test.7 min
Modification programs, 2009, as a mechanismA modification rewrites the installment; it is a new schedule, not a vanished balance.7 min
Forbearance at scale, 2020Forbearance pauses the due date for a season; the balance remains and can later be capitalized.7 min
The 2005 bankruptcy-law change, as a clock changeA means test is a capacity comparison written into a statute, applied to income rather than collateral.7 min
Subprime auto, 2016–2017, as a recovery-speed episodeSubprime auto is day-one LTV above one hundred percent plus a recovery clock measured in weeks.7 min
What the episodes share: capacity, a line, a clockEvery episode is a position, a term, a move, a test, and a recovery whose speed was priced.8 min
Capacity, a line and a clock: a repossession and a margin callCapacity, a line and a clock govern a repossession the same way they govern a margin call.7 min

Educational only. Nothing in this track is investment, legal or tax advice, or a recommendation to enter into any transaction. Completion is stored in this browser and nowhere else.