Posted on 06/20/2024 6:31:07 AM PDT by CFW
Thousands of homeowners face the risk of losing their homes due to “zombie mortgages” bought by companies — with some forcing foreclosures without their knowledge, according to a shocking report..
Many of the stunned homeowners took out second mortgages during the subprime lending housing bubble between 2004 and 2008 that they believed were written off — only to learn the mortgages have come back to haunt them.
An investigation by NPR found at least 10,000 old second mortgages that foreclosure activity had been initiated on in just the last two years.
[snip]
But their was a “zombie” mortgage on her home that she was not aware of.
She purchased the home in 2005 for $365,000 with an “80/20” loan. One mortgage covered 80% of the home’s cost — $292,000 — while the other covered the remaining 20% — equal to $73,000.
“It was the easiest thing I’ve ever applied for,” McDonough told NPR. “I just filled out paperwork and submitted it and I was approved.”
[snip]
When she asked for the mortgage to be modified, she said she was informed by the company, which serviced both loans, that the second mortgage was forgiven.
[snip]
But her fears were well-founded.
Limited liability companies that are registered in Delaware and whose owners’ identities are shielded by law bought up bundles of mortgages for pennies on the dollar in the wake of the 2008 housing crash — when banks were selling them for dirt cheap as they were going under.
Since housing prices were low after the crash, the mortgages were worthless. But once home values soared in the ensuing years, the investors who bought up the loans were looking to cash in.
(Excerpt) Read more at nypost.com ...
Yikes!
I think these deals are a deliberate transfer of wealth from the poor to the rich. You get people who can barely afford that house, who obviously don’t have the means to fend off these companies.
This is just as wrong as people getting money erased off credit card debt.After they got the use of the goods or services they charged to the cards.
They borrowed the money so Pay it back.
America’s printed, fiat monetary system and “progressive” government has duped low-info Americans into thinking money is “free.”
These people signed a debt obligation, with their home as collateral, and took the borrowed money. That someone still owns this obligation shouldn’t be a surprise to anyone with half a brain.
This woman bought a 365,000 house for no money down, and thought she’d gotten away with something. Now, 19 years later, she discovers she is expected to make good after all. Well at least she should have sizable equity in the first mortgage, after 19 years of making payments.
Fixed.
Read later.
Make your darn mortgage payments.
Do our schools no longer teach grammar? Does the Post no longer hire literate writers and editors?
Now we need zombie student loans.
When you pay off a mortgage you get a release form that you can record with the county. No form, no payoff. “Forgiveness” is BS and anyone should know that. Nobody gives away money.
People assuming that 20% of their home’s cost was “forgiven” shouldn’t be allowed to buy a home. Why isn’t there some document they can produce saying that the loan was forgiven? Something stinks here.
This is why you want to pay for TITLE INSURANCE FOR YOURSELF.
When you close, your mortgagee makes you purchase title insurance FOR THEM. You also want to purchase Title Insurance for YOU.
Don't know specifics but if notices weren't being given to the homeowners about late payments, that implies the loans were forgiven.
They could probably squat there for a few years - giving them time to save money for a new home.
“This woman bought a 365,000 house for no money down, and thought she’d gotten away with something.”
************
Precisely. That’s the real take away from the article.
Good advice.
“People assuming that 20% of their home’s cost was “forgiven” shouldn’t be allowed to buy a home.”
*************
She could have gone to a real estate attorney to verify everything. It would have been money well spent.
Who are “these people who took out second mortgages during the subprime lending housing bubble between 2004 and 2008 that they believed were written off”? My bank wouldnt of loaned me money under those circumstances. How do these low credit butt wipes get ahead of me in the line?
“It was the easiest thing I’ve ever applied for,” McDonough told NPR. “I just filled out paperwork and submitted it and I was approved.”
I told 3 friends here to apply and get the damn house on a mortgage. Where are they now? Bitching about life’s unfairness and still paying rent!
Shukin and a jivin! Gotta keep those moves movin!
2008 all over again. Maybe Pedo Joe will “forgive” a big pile of mortgages, you know if fairness or something.
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