Are debt collectors calling you about a zombie 2nd mortgage?
NPR’s investigations team has been doing stories about what are called zombie second mortgages. These are loans taken out 20 years ago that homeowners thought were dead and gone. Often homeowners say they were told by their mortgage lender that the loans were resolved or forgiven through a loan modification. But then the loans rise from the grave when companies try to collect or foreclose. Some companies are allegedly breaking state and federal rules trying to collect on these old loans.
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