What are zombie mortgages?
Zombie mortgages typically originate from the aftermath of the 2008 financial crisis.
These loans were often charged off or seemingly abandoned.
Take any communication from debt collectors seriously.
Gather all relevant documentation.
Collect any paperwork related to the original loan, foreclosure proceedings, and subsequent communications.
This information will be crucial in determining the validity of the debt and your potential liability.
Request a detailed accounting.
Consult with an attorney who specializes inforeclosureand debt collection issues.
Check the statute of limitations.
Be aware of the time limit for debt collection in your state.
If the statute of limitations has expired, you may have grounds to have the case dismissed.
In some cases, you may be able to negotiate a settlement for a fraction of the claimed amount.
Your attorney can help you determine if this is a viable option.
Investigate the chain of title.
Sometimes, the ownership of these old loans can be unclear.
Request that the debt collector provide clear evidence of their right to collect on the debt.
Be cautious about making payments.
Making even a small payment on an old debt can sometimes restart the statute of limitations clock.
Consult with your attorney before making any payments.
Stay informed about your credit report.
Regularly check your credit report to ensure that zombie debts aren’t being improperly reported.
Reach out to your lender to discuss options such as loan modification, forbearance, or refinancing.
Many lenders offer hardship programs that can help you avoid defaulting on your loan.
