Non-accrual is the status a lender applies when full collection of a loan is doubtful — generally when principal or interest is 90+ days past due, or repayment in full is not expected. On non-accrual, the lender stops recognizing interest income and reverses previously accrued interest.
A non-accrual loan earns nothing while it sits, so it is a direct drag on income — a key reason lenders resolve non-accrual credits rather than carry them.
Generally when it is 90+ days past due, or when full collection of principal and interest is otherwise doubtful, unless the loan is well secured and in the process of collection.
Previously accrued but uncollected interest is typically reversed against income when the loan moves to non-accrual.
No — it is priced to its collateral and recovery path. Non-accrual credits are routinely sold for cash. See how buyers price a CRE loan.