Zombie Foreclosures: Borrows Hit With Debt That Won’t Die
By Les Christy, February 22, 2013, CNN Money.
“Borrowers are discovering that their foreclosed homes are coming back to haunt them long after they have moved out.
In these “Zombie Foreclosures” borrowers move out after their banks schedule a foreclosure auction only to learn months or years later that the auction never took place or the bank never transferred the deed. That means the borrow technically still owns the house and is on the hook for property taxes, fees and homeowners’ association dues.
Since the housing bubble burst 7 years ago, almost 2 million properties have started but never completed the foreclosure process according to RealtyTrac. While no one knows the exact number, its estimated that tens of thousands could be Zombie Foreclosures…
In a $25 billion settlement with State Attorneys General last spring, the nation’s 5 largest mortgage lenders agreed to inform borrowers of any decision to forego or delay a foreclosure. But victim’s attorneys said the banks have not been careful about following that policy.”
To avoid this problem with certainty, borrowers in foreclosure should work out a short sale with an experienced attorney familiar with how the process works. If you want to know what your rights are, contact this office for more information.