In New Jersey, a “zombie second mortgage” refers to a second mortgage that was thought to be satisfied or forgiven but “comes back to life” years later to haunt the homeowner. Many times, no mortgage statements had been sent for several years, and the homeowner may have believed that the second loan had been part of a modification of the first mortgage.
Lenders may attempt to collect several years’ worth of interest by threatening to take the house though a “zombie” foreclosure. Legal assistance is necessary to resolve these issues. It is my position that if no statements have been sent, the Homeowners have not known whom to pay, where to pay or how much to pay, and an action to foreclosure seeks to collect interest and fees that are not due. I offer aggressive representation to countersue the lenders, through Counterclaims and Third Party Complaints, under the New Jersey Consumer Fraud Act (NJCFA) and the Fair Debt Collection Practices Act (FDCPA), and my goal is to have the lender remove interest and fees and provide a modification at a reduced interest rate.
If you are facing collection or foreclosure from a zombie second mortgage, contact us today. We offer aggressive representation for our clients, whether it’s battling zombie second mortgages or helping with loan modifications. Contact the law office of Ira J. Metrick today to discuss your options.
Important resources, timelines, and additional information can be found here:
