Up First from NPR
The Sunday Story: Planet Money Investigates Zombie 2nd Mortgages
May 26, 2024
Robert Smith and Chris Arnold, NPR Planet Money correspondents, dive into the chilling world of zombie second mortgages. They unravel how homeowners can pay their bills faithfully yet still face unexpected foreclosure. With riveting personal stories, they highlight the emotional toll and legal complexities victims encounter. The discussion wraps up with insights on how homeowners can fight back against predatory lending practices and navigate the murky waters of dormant debts that suddenly awaken.
31:28
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Quick takeaways
- Zombie second mortgages are resurfacing, causing homeowners like Karen to face foreclosure despite paying monthly mortgages on time.
- The legal landscape surrounding zombie mortgages is intricate, with lawyers utilizing regulations like the Truth and Lending Act to challenge foreclosure actions.
Deep dives
The Nightmare of Zombie Second Mortgages
Numerous homeowners like Karen McDonough are facing the horror of zombie second mortgages, which are resurfacing after years of being dormant. Despite being current on her monthly mortgage payments, Karen faced strangers claiming her home was in foreclosure due to an old debt resurfacing. This phenomenon, known as zombie mortgages, is affecting thousands of individuals who thought their loans were forgiven or forgotten after the financial crisis. The episode delves into Karen's alarming experience, shedding light on the legal and financial intricacies of these resurrected debts.
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