Zombie mortgage battle

What is a zombie mortgage? a long-dormant debt, often from a second mortgage or home equity line of credit, that unexpectedly reemerges years after homeowners assumed it was settled.

A lawsuit by mortgage lenders and other trade associations is asking a court to declare unconstitutional a California prohibition against reawakening these dormant zombie mortgages. 

The property rights advocates say these debts are typically already cleared and come back to life like zombies when property owners believe them to be settled and final.

CU Today | California CU League Joins Fight Against ‘Zombie Mortgage’ Law, Suit Claims Law Is ‘Unconstitutional’