Zombie mortgages have their roots in the lead-up to the 2008 housing crisis. Lenders offered two mortgages in one: 80/20 mortgages with the main mortgage covering 80% and the secondary covering the down payment.
After a fixed period, interest rates spiked, leaving many homeowners underwater. To assist, the Making Home Affordable program was initiated, allowing for mortgage modifications and reduced payments.
Not a lot of people can figure out the issue of zombie mortgages, making them challenging to fight. Collection of these debts is deemed a sleazy part of the business, preying on vulnerable homeowners.
Collection
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