Zombie Mortgage Loan foreclosures are on the rise in New Jersey. If you’ve recently discovered a long-forgotten second mortgage or Home Equity Line of Credit coming back to haunt you, it’s important to understand your rights. At the Law Office of Ira J. Metrick, Esq., we offer aggressive representation to save your home from foreclosure and fight off the debt collectors of long-dead mortgage loans.
Can I Lose My Home to a Zombie Mortgage?
Yes, it’s possible to lose your home due to a zombie mortgage foreclosure. A zombie mortgage is a mortgage that had been in default and has been dormant for several years. This is most likely because the property value had been too low to pay off the first mortgage and leave anything for the second (now Zombie) mortgage. In many of these cases, the borrowers believed that the loan had rolled into a modification of the first mortgage or resolved some other way.
Now that property values have increased, these loans have come back to life. If they are not defended, these foreclosures will cause unsuspecting homeowners to lose their homes or be forced to pay interest and fees that accrued during the time the loans had been dormant.
How to Fight a Zombie Mortgage
Zombie Mortgage foreclosures often seek to collect interest and fees that accrued during the time the loans had been dormant but cannot be legally collected. It is possible to bring claims and defenses under the New Jersey Consumer Fraud Act (NJCFA), The Truth in Lending Act (TILA) and the Fair Debt Collection Practices Act (FDCPA) to prove that the Zombie Mortgage is seeking to violate the law in their attempt to collect. Taking prompt action, especially with legal guidance, can be crucial in effectively managing a zombie mortgage to prevent unexpected financial consequences.
Contact Us To Fight Against Zombie Second Mortgages
If you are facing foreclosure or debt collection due to a zombie second mortgage or loan, contact the law office of Ira J. Metrick today to discuss your options. We aggressively defend NJ homeowners against foreclosure and help them escape from unexpected zombie loans or mortgages. We can also help you with other legal issues, such as Surplus Funds, Foreclosure Defense, and Mortgage Loan Modifications. You are not alone; we are here to help every step of the way. Call today for a free consultation.
