Arrears are payments you owe for rent or a loan that you did not pay on time
Arrears is the money you fall behind on — the rent you did not pay last month, or the mortgage payment from two months ago that you still owe. When you are behind on payments, you have arrears. The amount grows each month you do not pay, and it stays owed until you catch up or someone forgives it.
Arrears are different from your regular monthly payment. Your regular rent or mortgage is due on a set date each month. Arrears are the unpaid balance that sits on top of that. If you owe $1,500 in rent for March and $1,500 for April, and you have paid neither, you have $3,000 in arrears plus whatever May's rent will be when it comes due.
Understanding arrears matters because they affect what happens next — whether a landlord can file for eviction, whether a lender can foreclose, and what programs might help you catch up. The longer arrears sit unpaid, the more serious the consequences become.
Key Takeaways
- Arrears are the total amount of rent or loan payments you have missed and still owe, separate from your next regular payment.
- Landlords and lenders can take legal action once arrears exist, though the timeline and process varies by state and by contract.
- Some programs pay arrears directly to landlords or lenders, but they usually require proof that the hardship was recent and that you have a signed lease or loan agreement.
- Catching up on arrears before an eviction or foreclosure filing is filed is faster and cheaper than fighting one in court.
- If you cannot pay arrears in full, negotiating a payment plan with your landlord or lender is often possible before legal action begins.
How arrears affect eviction and foreclosure
Arrears are the legal reason a landlord can file for eviction. Most states allow a landlord to file once rent is a certain number of days late — often 3 to 5 days, though some states allow 10 to 30 days. The exact timeline depends on your state and your lease. Once a landlord files, the court process begins, and you will receive a notice to appear.
For mortgages, arrears trigger the foreclosure process. A lender typically cannot foreclose until you are 120 days behind — that is four months of missed payments. Before that point, the lender will send notices and may offer a loan modification or forbearance plan. Once foreclosure begins, the timeline to stop it shortens dramatically.
The key difference is that eviction can start sooner, but foreclosure takes longer to complete. In both cases, the size of your arrears matters: the more you owe, the harder it is to catch up and the more leverage the landlord or lender has to push forward with legal action.
Programs that pay arrears directly
Some rental assistance programs and mortgage relief programs pay arrears to your landlord or lender on your behalf. These programs exist at the local and state level, and they usually cover rent or mortgage payments you already missed rather than future payments.
Rental assistance programs run by your city or county often cover up to 12 months of back rent, depending on the program and available funding. They pay the landlord directly, which stops an eviction filing or pauses one that has already started. Mortgage assistance programs work similarly — they contact your lender and pay the arrears directly into your loan account.
To use these programs, you typically need a signed lease (for rental assistance) or a mortgage note (for mortgage assistance), proof of the hardship, and proof of income. The program will verify your information with the landlord or lender before sending payment. This process usually takes two to six weeks.
Negotiating a payment plan for arrears
If a program is not available or you do not meet the requirements, you can negotiate directly with your landlord or lender. Many will accept a payment plan rather than go through eviction or foreclosure, because both are expensive and time-consuming for them.
Start by contacting your landlord or lender in writing — email or certified mail — and explain your situation. Propose a plan: for example, paying half your regular rent plus an extra $200 toward arrears each month until you catch up. Be specific about the amount and the date you will pay each month. A landlord is more likely to accept a plan they can see in writing than a verbal promise.
Put any agreement in writing and keep a copy. If the landlord agrees to a plan and you follow it, they cannot file for eviction as long as you stick to the agreement. If you miss a payment on the plan, the landlord can resume eviction proceedings, so only propose a plan you can actually afford.
What happens if arrears go unpaid
If you do not pay arrears and do not negotiate a plan, the landlord or lender will move forward with legal action. For renters, this means an eviction filing and a court date. For homeowners, this means a foreclosure notice and the start of the foreclosure process.
Once legal action begins, the cost to you rises. You may face court fees, attorney fees if you hire a lawyer, and the cost of moving if you lose. An eviction or foreclosure also damages your credit and makes it harder to rent or borrow money in the future. Some landlords report evictions to tenant screening services, which can follow you for years.
The longer arrears sit, the more they compound. Late fees, court costs, and interest (on mortgages) add to the original amount you owe. What started as $3,000 in back rent can become $4,000 or more by the time a court case ends.
The difference between arrears and current rent
Arrears are what you already owe. Current rent is what is due this month. They are separate obligations, and a landlord can demand both at the same time.
This matters when you are trying to catch up. If you have $2,000 in arrears and your rent is $1,500 a month, paying $1,500 this month covers only current rent — your arrears stay at $2,000. To actually catch up, you need to pay $1,500 for this month plus something extra toward the $2,000 you already owe. Many people get stuck here: they pay current rent but never close the gap on arrears, and the landlord can still file for eviction.
Some assistance programs cover both arrears and future rent for a set number of months. Others cover only arrears. Always ask the program what they will pay before you apply.
Arrears on other debts
Arrears are not limited to rent and mortgages. You can have arrears on utilities, property taxes, homeowners association fees, car loans, and other debts. The principle is the same: arrears are the unpaid balance that sits behind your current obligation.
For utilities, arrears can lead to disconnection. For property taxes, arrears can lead to a tax lien or foreclosure. For HOA fees, arrears can lead to a lien on your home. Each type of arrears has its own timeline and consequences, so if you are behind on multiple debts, prioritize the ones that threaten your housing first.
Frequently Asked Questions
Can a landlord evict me if I have arrears but I am paying current rent?
Yes. Paying this month's rent does not erase arrears from previous months. A landlord can file for eviction based on unpaid arrears alone, even if you are current on this month's payment. This is why catching up on arrears matters as much as staying current going forward.
How long do I have to pay arrears before a landlord can file?
It depends on your state and lease. Most states allow a landlord to file once rent is 3 to 30 days late, though some allow longer. Check your lease and your state's landlord-tenant law, or contact your local housing authority to learn the timeline in your area.
If a program pays my arrears, do I still owe the landlord anything?
No. When an assistance program pays arrears directly to your landlord, that debt is satisfied. You owe only your regular rent going forward. Make sure you understand what the program covers before you apply — some cover only a certain number of months or a maximum dollar amount.
What if I cannot afford to pay arrears even with a payment plan?
Look for local rental or mortgage assistance programs first, since they may cover arrears without requiring you to pay anything. If no program is available, talk to a legal aid organization in your area — many offer free advice to renters and homeowners facing eviction or foreclosure and may know of other options.
Do arrears stay on my credit report?
Yes, if the arrears go to court or if the landlord or lender reports them to a credit bureau. An eviction or foreclosure will appear on your credit report for seven years. Paying arrears before legal action starts is one way to avoid this damage, though the payment itself may still be reported.