Fighting Zombie Second Mortgages: Helping Borrowers Whose Second Mortgages Have Been Dormant for Years and Are Now Coming to Life to Feed on the Equity in Their Homes
During the Great Recession, borrowers who had entered into second mortgages with predatory terms, such as interest rates that adjusted upward after only a few months, often found themselves unable to make the payments. Because housing values had dropped so much, and foreclosure on a second mortgage results in payment to the lender only if…
