Because these mortgages seem to reappear after being considered “dead” or gone for so long, they’re sometimes called “zombie” second mortgages. They are now reviving these zombiemortgages and demanding repayment, often with added interest and fees. This has resulted in an increase in foreclosure actions related to these old... A zombiemortgage is a mortgage that was believed to be settled, discharged, or satisfied long ago but remains legally active. In the vast majority of more current cases... Often called “zombie” mortgages or “sleeper seconds,” these loans had lain dormant for years. Borrowers took them out before the Great Recession, as the housing bubble expanded. Many "zombie" mortgages date back to the 2008 financial crisis. Consumer advocates warn a new wave of "zombies" could be on the horizon... Zombiemortgages are dormant second mortgages that can result in foreclosure difficulties for homeowners, turning their home into a zombie property. A zombiemortgage is a home loan you thought was paid off or forgiven but is still active. This can happen when lenders write off a debt, such as a second mortgage... Zombiemortgages are second home loans that are in default or past due. Zombiemortgages can happen due to filing errors or misunderstandings with mortgage lenders. The zombiemortgage problem was created during the run-up to the 2008 financial crisis, when millions of people defaulted on mortgages. Spencer Platt/Getty Images hide caption. Some homeowners are facing threats of foreclosure actions on their homes for “zombie debt,” or unpaid second mortgages (or loans involving the home as a collateral)...
