Debt Collectors Are Cashing In On Dormant Second Mortgages.

The article focuses on the resurgence of "zombie" mortgages, which are old second loans from the subprime mortgage era that homeowners believed were canceled or forgotten. A Bloomberg investigation reveals that debt collectors are now pursuing these debts, leading to potential foreclosures for many homeowners, including the Amables, who faced foreclosure despite believing their second mortgage had been canceled. The investigation highlights how a new industry has emerged to collect on these dormant loans, often using aggressive tactics, and underscores the complexities of the legal landscape surrounding debt collection practices. The article emphasizes the importance for homeowners to check for outstanding liens and seek expert advice if approached by debt collectors. [Extracted from the article]