#zoombie

A zombie mortgage is a second mortgage or home equity line of credit (HELOC) that resurfaces years after the homeowner believed it was settled, forgiven, or discharged. These debts, often from the pre-2008 housing bubble era, are typically bought for pennies on the dollar by debt collectors who later attempt to collect the full amount, plus accumulated interest and fees, sometimes threatening foreclosure. How Zombie Mortgages Originate: Zombie mortgages arose from "piggyback" or 80/20 loans common before the 2008 financial crisis. In these arrangements, a homeowner took out a first mortgage for 80% of the home's value and a second for the remaining 20% to cover the down payment.  When home values collapsed, many of these second mortgages became "underwater" (worthless). Original lenders often: 

Wrote off the loans as uncollectible for accounting purposes, leading many homeowners to assume the debt was gone.

Stopped sending statements or communicating with borrowers, often without formally discharging the lien.

Sold the defaulted debt in bulk to third-party debt buyers (private equity firms and collection agencies) for a very low price

This is precisely what Bloomberg has investigated recently, it's like reality is the plot of It's a Wonderful Life in reverse with a bunch of Scrooges with their hands out..to ruin the lives of the average Joe.