Zombie mortgages are coming back from the dead. Their initial wave happened “after the recession in the fall of 2008,” and now, “as home prices continue to soar, zombie mortgages are seeing a ‘second wave,'” David Weber, a professor at the Creighton University School of Law, said to The New York Times.

Zombie mortgages — which are effectively second mortgages that homeowners had thought were settled — can cause some serious problems, from retroactive interest and racked up late fees to debt collections and possible foreclosure. Even scarier, said The New York Times, “a homeowner might have no idea that a secondary lender is on the title to their property.”



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