California single mom had no idea she owed tens of thousands of dollars in zombie mortgage debt

Teresa modified her home mortgage back in 2009 during the financial crisis, and thought she was making payments on her second mortgage every month. She's discovered she's overdue on thousands of payments for this "zombie debt," and fears losing her home.

[theperpendicular]

Is there anything in America that isn't a scam ?

[danwittels]

Get a lawyer. That debt may not be collectable. I think if they haven't tried to collect in four years in California, the debt is uncollectable. Please consult a local realestate attorney.

[philoctetes_wordsworth]

I am so tired of financial institutions’ collaboration with criminals.

[annalouisehorn]

It’s because your home is now worth enough for them to come after you.

[joannebeauchamp]

Word to the wise…Never, ever, assume anything. Get it in writing and have someone explain it to you face to face…Period! 🤢🤢

[DagNeb_It]

The repeating line from all the different stories is, “‘I was not made aware’ that my modified loan did not involve the 2nd load.” I have heard this 5 times so far.

[FVWhimsy]

How is it that they NEVER notified her from early on about the mortgage delinquency? I mean, she's living in the same home that was financed, so they know her address.

[akui]

Someone bought a bunch of old debt and is trying to collect or take ur house.

[AFloridaSon]

Never assume. Never trust financial establishments. Read the fine print.

[marih]

Obviously, these companies intentionally put these loans in a "Deep Sleep" mode as part of a future way of taking these properties from unsuspecting homeowners!

[puffnstuff]

Should've talked to a lawyer first and the media second.

[totit_t]

Was this second mortgage through Bank Of America by any chance?? 🤔 When she said 'shady', that's the only bank that came to mind. 😂😂😂😂😂😅

[trinasyoutube]

How terrifying. Lawmakers need to be looking into this!

[HanaRoad]

There is a fiduciary responsibility of these mortgage companies so they should be sued.

[karenskowronski]

Our mortgage is doing the same to us right now. It’s horrible.

[joefroelich]

I believe that after 15 years of no correspondence this bank has no right to collect on this loan.
She should have been notified within 60 days after she refinanced no 15 years. A judge should throw it out

[eliharp]

Whoever closed these loans is responsible! There is always a first payment letter included in the closing. A modification can and will not consolidate two loans. That must be clear. The purpose of a notarization is to be sure the signer understands the documents not just the identity of the signer! The servicer simply bought the loan from whoever closed it. Sad to say it but it is the borrowers responsibility to understand the process and to often people rely on what's said in lue of reading every document in it's entirety. There is always a payment of some kind, even with a reverse mortgage where the property itself is the repayment. Awful story and feel bad for the borrowers.😢

[mikeberger]

The longer she talks the truth comes out ! There was no write off, they finally found who owed the money!

[yellowbird]

To my knowledge, having had four mortgages, two second mortgages and four refinances, I don't think a house can be refinanced WITHOUT the second mortgage. The first mortgage is what the second mortgage is based on. You cannot sell a house without the second mortgage getting paid off. The second doesn't have a separate existence as far as I know. This was apparently a mistake by whoever refinanced the mortgage, and they are liable.

[justice_]

Lady didn’t get scammed she forgot about the agreement she signed. Read the fine print people, if you take out a loan it has to be repaid..