Protect Your Home in California From “Zombie” Second Mortgages
Learn How California’s #1 Attorney/Realtor® Can Help Protect You From Second Mortgages And Junior Liens
Old mortgage debt from second mortgages and home equity lines of credit are coming back to haunt unsuspecting Californian homeowners who thought their mortgage problems were finally behind them.
Many of these second mortgage holders haven’t been heard from in years, leading some homeowners to falsely believe that their old mortgage was either cancelled, removed in bankruptcy, or simply forgotten about. However, the frightening truth is that these mortgages do not “expire” or disappear, and the resulting liens remain on the home even if a bankruptcy was filed. Those liens can be foreclosed upon by the mortgage holder at any time.
Many homeowners are now learning the hard way how powerful this default mortgage loan industry has become. Initially, the original lender sold the default mortgages on the cheap to “vulture investors” who could wait years until the market recovered before making demands for payments. Because of California’s skyrocketing home values, these bottom-feeding debt collectors now find themselves in an extremely strong position to force homeowners to either pay up or face imminent foreclosure. Homeowners find themselves facing foreclosure many years after correcting their original mortgage problems. Many have paid down their senior mortgages through loan modification providing even more equity for the vulture investors to devour. Unfortunately, homeowners with this newfound equity have absolutely no leverage to negotiate a discounted payoff with the debt collectors.
Further, most of these vulture investors are not required to even consider a loan modification under California Homeowners Bill of Rights (which only applies to senior mortgage debt). If they do consider a loan modification, failure is almost certain based upon the Net Present Value test. Even homeowners without equity are vulnerable because these debt collectors can squeeze every penny out of the homeowner by threatening foreclosure. We are seeing this happen without sufficient value to cover the mortgages in the case that the property is sold at auction.
Homeowners facing these “zombie second mortgages” and “vulture investors” are in a precarious situation, but there are ways to protect your home and your equity. An experienced real estate attorney like the team at Lawyers Realty Group can identify the hidden liability traps that are almost always missed by traditional real estate agents and loan mod consultants. Get in touch with Lawyers Realty Group today for a free comprehensive analysis of your situation. We are also happy to offer free legal advice on the best way to safeguard against future liability.
Don’t fall victim to the mortgage zombies! Call Lawyers Realty Group at (949) 264-0966 or contact us online today to start protecting your assets.