Thousands of homeowners could face foreclosure over "zombie" mortgages. Here's what to know.

Potentially tens of thousands of homeowners are suddenly facing possible foreclosure, after making mortgage payments on time for years. Many "zombie" mortgages date back to the 2008 financial crisis. Consumer advocates warn a new wave of "zombies" could be on the horizon, this time from the home equity lines of credit taken out during the pandemic.
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[@scarlette9953]

Delinquent on payments for 10 years! Now the company comes after her when the late fees etc. are so high. This is obviously intentional.

[@labnine3362]

Not paying was intentional too. Time to pay the piper.

[@eile4219]

This is kind of like legalized scam.

[@marthaajackson]

@@labnine3362Except that the loan company broke the law. They are legally required to send her notifications of amount owed and they never did.

[@ganthc]

@@eile4219 that can be true when the people that buy the house at auction are the same ones that triggered the foreclosure in the first place. And that happens in these situations. Simple preventative measure: keep track of your loans, especially if your house is being used as collateral in the loan.

[@jeanieologist4456]

@@labnine3362why so heartless they are in the wrong not this veteran

[@Isynchromissity]

I worked for a bank. I assure you it is a scam. They know what they’re doing even when they have employees calling the back office every single day for six months to tell them that they’re making a mistake. And yet they still do it and pretend like they don’t know.

[@humongousdingus7382]

I feel this has been done on purpose so homes can be foreclosed on in favorable areas!!

[@nadiag5406]

Yup!

[@ms.ebbiel.3550]

Bingo!! 🎯

[@thuythanhnguyen8888]

My first thought as same, too.

[@Zara-gc3cz]

It has been. The banks want to take as much land as possible.

[@toddweaver2704]

See the problem is CBS did not do a very good job of reporting the story. Maybe you go knock on her neighbors doors and ask if this is happening to them, maybe you look up how many people are getting forclosed on like this in her community. This story was really lacking, CBS should do a do over, or circle back or what ever they call it. Hope they get the lady some representation and does a follow up. During first housing crisis my neighborhood learned what Ballon mortgage resets meant, 38 people in my neighborhood lost there homes when there mortgage reset. changed the whole make up of my neighborhood we went from home owners to rental company ownership,

[@Westcoastguy]

I'm surprised it took so long for them to come for their money. 10 years later is crazy. I always thought if you were late 2, 3, or 4 months they would be hounding you like crazy.

[@xx133]

No, they wait until y are too far behind then they can’t take the home for pennies on the dollar and keep decades of payments that were made. Win win

[@jaytaylor2090]

Exactly!! Want the fees to pile up.

[@48laws45]

No you are thinking about what happens to poor people, that doesn't apply to the rich..they can get away with everything because there is no will to enforce penalty on the rich..the poor always protect the rich because they aren't actually against the idea of cheating otherwise they can't justify their own behavior if they got rich too..look up how the poor defend the rich it's actually quite disturbing

[@joejoey7272]

Sounds like they were waiting for the home values go up before they cash in

[@TheOneinthewoods]

Theres prolly more to it. I once got a second mortgage and my payments stayed the same but it matures in 10 years whereas your payments are huge if you let the second mortgage just sit

[@floydchusset3143]

Sold 2 Bay Area properties for $616k due to foreclosure. Planning to buy new home next year. What to do with funds in joint savings?

[@majidcoper]

Inflation-proof your portfolio with the right stocks & commodities, but seek expert advice from a money coach/invt-advsor to avoid costly mistakes.

[@ryanthompson8256]

Concurred. was way easier for me to navigate the mrkts not until 2020 stock mrkt crash, I had to source for a prtfolio-coach to revamp my entire prtfolio and hedge against inflation. Concisely, I’ve pulled off around $850k after subsequent invstmnts, since using a coach two yrs and counting...

[@floydchusset3143]

thats huge! can you be kind enough with info on the coach that guides you please? I’m in dire need of one as I approach retirement

[@ryanthompson8256]

Laura Grace Abels is her name. She is regarded as a genius in her field . just look her up online,

[@ryanthompson8256]

you can quickly verify her level of experience. She is well knowledgeable about financial mrkets.

[@diegolara4202]

If my mortgage is $1500 and then I get another loan on top of that and my payment remains $1500 why would I assume the new loan is being paid off through that payment? If I get a loan for $65k and I never see an increase of payment or a bill the first thing I do is call the bank and ask what my payment is or I go online and keep track of it. This tells me these people ignore it thinking they got away with it and then act like they never knew it wasn't being paid, because logic and common sense tells you they would have noticed.

[@fordsrestorations970]

Millions of people need to check their mortgages because they may be in danger of losing their homes worse than the George W bush housing market recession.

[@ayoutubegirl5933]

I'm sure her payment increased.But one thing I do know about banks because I used to work at one is that they will allow for 1 payment for both the mortgage and home equity.But the system is supposed to split it appropriately and sometimes that doesn't happen.

[@jazziez6467]

@@fordsrestorations970 you mean obama

[@Lillith1203]

Elephant in room, just how many people have done this, and why are lenders and banks not regulated better after the 2008 housing recession? Everyone needs to check on their mortgages and loans.

[@rickyayy]

​@fordsrestorations970 how can millions operate this way.

[@26stanzo]

The original loan on this was an 80/20 purchase loan with one lender who held the 1st and the 2nd, she did not take out another loan in 2014. She got a modification on the 1st in 2014. The commentator was incorrect. When she took out the modification, the bank informed her that the 2nd was charged off and they stopped sending statements as well. Not sending out monthly and or quarterly statements is a responsibility of the servicer and timelines are crucial. The servicer gets paid for that . Laying in wait is what the unscrupulous lenders do to take people's properties. Solution: Collect on the original $65k at the original rate and drop all of those lender junk fees and interest that the lender is trying to profit on. It's a shame that incorrect information goes out and people make negative assumptions.

[@Zeus2024-pn2ht]

This does not surprise me that the commentator got this wrong. Probably on purpose to skew the reporting to enhance the story.

[@t.k3025]

Where was her attorney?

[@MBrowser-yh1qp]

Every loan modification I've ever seen the second kicks in after the first is paid off. After all, the modification tries to reduce payments to keep you in the house. Her story makes me believe she had a second with a different lender.

[@radolfkalis4041]

10 YEARS of no payments, the creditor says, THEN they take action? I call BS.

[@JSM.]

They waited until they h9mes had enough equity

[@ganthc]

The lady never paid on the loan, so the debt gets sold to secondary markets. Then venture capitalists or anyone (you could buy up her loan) can go buy the debt for pennies on the dollar. Then you can start trying to collect with interest and fees attached. And the loan is a legal document that allows for the creditor to put a lien on the house and file for foreclosure to collect on the debt. The original issue is that the lady never explored why her monthly mortgage never increased, never called her second lender to find out why she didn't get a statement, she just didn't pay on $65K. In a lot of these cases, the second lender goes bankrupt and the debt they hold doesn't go away...it just sits on the books until someone picks it up eventually and decides to collect.

[@26stanzo]

@@ganthc How do you know she did not call the lender on the 2nd. Not responding to emails and calls is another tactic that the banks use to justify their actions. During the mortgage crisis, they did that all of the time. When she did her modification, not 2nd loan in 2014, the lender informed her that it was charged off. These are just bad business practices that compliment and justify their greedy actions. Would you let someone live in your home for 10 years plus and not send out a claim for your money? Big banks are predators for sure.

[@JoshL1976]

Absolutely bs. Theft. Banks are broke

[@JoshL1976]

​@@ganthcShe paid everything on time

[@michellethompson5545]

You borrow 65k and then never make payments in 10 years.. this doesn’t make sense

[@greylatern]

It happens. Their are companies that buy debt and intentionally sit on it for years to rack up interest, then come after you. My mother had 10k student loan. She would pay it down then they would refuses futher payments and ask for a lump sum to pay the rest, which was hard for a single mother to do. So they would sell it to someone else before she paid it off and they wouldn't contact her for years nor would they tell her what company bought the loan. someone would reappear and it would start all over again. 10k ended up being 30k after nearly 10 years of musical chairs. Rough thing to do to a single mother. I'm suprised they are getting away with this behavior with home loans.

[@anthonymartinez4307]

They trap people like any scam artist. No invoice to customer to make it seem like the customer bailed out “ a straight set up” many loan places will entrap people who borrow much less so that the interest skyrockets. Today people will rob you if you don’t watch it.

[@cmapit3220]

She said after she took out the loan, her mortgage company gave her a new monthly payment. I can see how she was confused and even misled. Obviously, I'd need to do more investigation to fund out what predicated the new monthly payment, but something seems fishy there. And it's illegal if they never sent her monthly statements.

[@insidepriscillasworld]

That’s not what she said.. look at it again.

[@margaritomendoza5615]

CBS made an error and said she took out a 2nd mortgage. Or they intentionally lied to misled and build their narrative. In any case, what they meant was she received a modification (to bring her 1st mortgage current because she was delinquent). The homeowner may have assumed that her 2nd mortgage was rolled in or included in that modification. That’s where CBS is correct in saying she was mistaken. The fact is that she most likely received hundreds of calls and letters about it but ignored them because she thought she was paying on it with her 1st mortgage mod. I’ll bet her house was purchased between 04 and 08 and that she’d stop paying on the 2nd earlier on before 2010. But CBS conveniently leaves all that out their piece and somehow start from 2014.

[@casienwhey]

You get a 2nd mortgage, don't make payments on it, and then are surprised there is a problem? Am I missing something?

[@JeanyyBee]

But she was making payments

[@HoneySnowflake]

I think you are 😅

[@michael-cd7zb]

She believed her mortgage payment covered the 2nd loan

[@samudramanthan8645]

@@michael-cd7zb What we "believe" doesn't matter. I believe that between 9AM and 1PM, I can drive 30 MPH over the speed limit.

[@michael-cd7zb]

@@samudramanthan8645 I “BELIEVE” in GOD THAT DOES MATTER 😉

[@jaimebaca9439]

I’ve never lost track of a loan. You guys normalize irresponsible behavior with reports like this.

[@djpuplex]

They like to victimize people and blame the same businesses that advertise entities th them.

[@mamatrain100]

Lawyers up front are cheap, but, exploiting those that can't afford one is a cheap move.

[@SideB1984]

Agreed. Get a free Experian account for credit monitoring and voila, get notified instantly of any credit inquiry or new lines. And to not know you weren’t paying your 2nd mortgage is just ridiculous. I don’t care if you are a veteran, you have to manage your accounts and review electronic statements if you don’t get paper.

[@malin7919]

Welcome to Kamala Harris America where loan forgiveness is what Harris supporters are conditioned to.

[@michah321]

A company should be obligated to demonstrate that they tried to send bills and notices.

[@michah321]

How can they not send any bills and then show up and say you owe this crazy amounts? You should be responsible to send bills and notices or the bill shouldn't be enforceable.

[@sherriianiro747]

It happens all the time - property taxes are the same, because they say you are responsible for knowing what you owe and paying it so it's no excuse. Says right on the bill and usually promissory notes say the same thing. As far as I know it has always been that way, and now that everything is online you can't get around it so it's important to keep track.

[@dip5635]

This happened to me with my hoa. They never sent me a bill then 8 months later here comes a massive bill with late fees tacked on. It should be illegal.

[@michah321]

@@sherriianiro747 there should be a law that if a company or government can't be bothered to send bills in a timely manner, too freaking bad, they lose the right to collect that money

[@sherriianiro747]

@@michah321 I agree, but their argument is that people lie and say they didn't get the bill thinking that way they don't have to pay it, especially taxes.

[@michah321]

@@sherriianiro747 they'd have copies and documentation of the billing and where they mailed it to.

[@scotthester2189]

It’s not zombie debt, it’s zombie people, stay on top of your debt or your debt will stay on top of you. I had 66 month truck loan from Toyota financial, (stay away) with 10% interest. 1 year later it’s almost paid off. The interest will will steal your money if u are not careful.

[@John-du2mq]

I borrowed money but I thought they weren't going to ask for that money back. I'm a victim.

[@daddytheman9957]

I don’t think being a veteran, serving in Iraq or being injured has any bearing on this case. If the bank or loan provider is violating the law then let’s deal with that on its merit. However, any prudent common sense individual (veteran or not) should be keeping track of what was borrowed and what is being paid.

[@andrewcecce]

Well said

[@Spyrit2011]

The law is that banks must send monthly statements, failure to do so is fraud. So if a bank sells a mortgage modification to a private equinity firm, without the owner's knowledge or consent is also fraud.

[@DamienEarth]

Nope, not true. Your status should 1000% have weight .. it’s the reason multi-time criminal offenders get their doors kicked in at 3 am vs white collar criminals scheduling the day they will turn themselves in.. We literally become socialists, pool our money together and bail out banks who were not even confused as to what they owe.. people stayed rich while we made them whole. If anyone deserves that, it’s the man/woman who protect our freedoms while we’re chasing dreams! If any part of the process on the corporate end gets mishandled, then the bills start from the day they fix their mistakes.. she shouldn’t owe anything, until they’ve done their part. They send her something Monday, she starts making payments Monday..

[@johnthompson7548]

Normally- yes. In this case they violated the law and refused to make it right. I say send the CEO and the idiot who did this to Iraq with some anti-Mohammed statements and let it sort itself out.

[@26stanzo]

The commentator did not report this correctly. She had a 80/20 purchase money loan. She did not pull out a second in 2014, she got a modification due to falling behind on her mortgage due to being injured in Iraq. That's here serving your country comes in. Both loans were taken out at the same time in 2006 when she purchased her home with the same bank, Bank of America. The bank approved her HAMP modification and at that time she was given erroneous information that she no longer needed to pay the 2nd, because it was charged of. She never missed a payment on her agreed to modification and then 10 years later once the equity rose significantly, the investor, Real Time Solutions (RTS) hit her with the Notice of Default. As a loan servicer, it is your responsibility to send out monthly and or quarterly statements which they did not do and just waited for interest and lender fees to accumulate so that they could benefit from homeowners lack of knowledge of the rules of the game. Google RTS and read the numerous complaints of the same nature.

[@TimothyStclair-v4p]

Why take out a second mortgage until your home is paid off?

[@T2C47]

People sometimes do that when they need money to cover renovations or something major happens. They look at it like taking a loan, but the house is the collateral. I wouldn't recommend it, but I understand sometimes people have no choice.

[@davidgray1515]

@@T2C47 that sounds more like a home equity loan and not a mortgage

[@T2C47]

@@davidgray1515 "Yes, a home equity loan is another name for a second mortgage. Both are loans that allow homeowners to borrow money using the equity in their home as collateral. The loan is secured by the property and repaid in monthly installments. Home equity loans are lump-sum loans with a fixed term and interest rate. Repayment begins immediately after approval. Home equity loans are often used to finance large expenses, such as home improvements, debt consolidation, or education. Home equity lines of credit (HELOCs) are another type of second mortgage that offer variable rates and ongoing access to funds. HELOCs have a revolving credit limit, while home equity loans have fixed repayment terms. The federal funds rate can affect HELOC interest rates, making them more expensive if the rate rises."

[@lifeisadream1992]

So ive heard of lenders telling people they are $5,000 behind on payments andthreateningforeclosure. They pay the $5,000 and the next year the bank tells them they overpaid $5000.

[@threedogsandacamper503]

I hope she’s able to work something out to keep her home, but after watching several of these stories, I’m not so sure it’s the mortgage that was the zombie…

[@tranger4579]

This is one of the reasons I did not do any remodeling or put any major repairs on the old craftsman house I bought for 54 thousand. I refused to do anything until the house was fully paid off and title transferred to me. The bank hounded me year after due to the value of the property not going through increases year after year compared to other homes in the area. They offered me HELOC and a straight up refused. It was a 9 year sacrifice but I did it. Now I own the house and had it remodeled without any loans just saving.

[@TheOneinthewoods]

I'm doing the same and the entire neighborhood hates me cause their houses are all beautiful and mines a dump

[@Jackie-u5q]

This is irresponsible reporting. You take out a loan, don't get a bill, and never call to inquire about the debt ? Take responsibility for your debts and you won't have a problem.

[@DavidDLee]

She did not understand what she was signing, she did not ask, she never checked her credit report, which is quite easy and free. Yet, the predatory practice of the lender should make them not only pay, but also lose their license to practice as a lender. They should all start a class-action.

[@MerceDeGuzman-n1u]

You are responsible for your mortgages don’t blame anyone it is still your responsibility no matter what

[@Mlogan11]

No, lenders are RESPONSIBLE for sending you monthly statements of what you owe. If you don't make any attempts to collect on a loan for decades, that's the lenders problem and they should NOT be able to charge back interest/late fees.

[@daw7773]

You missed the main point of the video which is that the new “mortgage company” “changed” the monthly payment without notifying the customer which lead to the customer “under paying” due to the company not notifying the mortgage customer of the “new mortgage”. SMH

[@TheOneinthewoods]

​@@daw7773wake up. You don't take a loan out and not pay attention to when your first repayment is. Smfh

[@daw7773]

@@TheOneinthewoods You still missed the point of the video. SMH

[@josd04]

Damn, this happened to my parents. Apparently, my dad took out a 2nd loan and never paid it because he thought it was added to the 1st loan since the amount wasn't the same. They never mailed any additional statements or past due notifications. Ten years later after my parents divorced my mom received a foreclosure notification from the same company being sued. She had to pay $20,000 upfront to keep the house from being foreclosure. She now pays two different bills for a total of $3500. Which is still a good amount for living in San Diego. Keep in mind she has to sell ALL, I mean ALL her valuables even some land just to save the house.

[@JohnSmith-xu7ev]

I feel you. They need to change foreclosure laws

[@jocelynburciaga1993]

Same thing happened to my parents here in San Diego

[@JohnSmith-xu7ev]

@@josd04 I would look into the statute of limitations. Some places cant sue you after 10 years

[@PHN-2024]

How About Not taking out a 2nd Mortgage when You Still Owe on your 1st Mortgage. These People are Not Victims just Scammers looking to Not Pay Back Anything.

[@dirkrunfast]

How About You Learn To Not Type Like This

[@PHN-2024]

@@dirkrunfast WhY? ArE yOu TrIgGeReD?

[@Drknnja]

Most of these mortgages were 80-10 to begin with just to avoid PMI. The PMI would have been cheaper.

[@HTCM8FLY]

Concur. How about this "victim" conduct some due diligence. What did she do? Just qnother californian doing californian stuff

[@dirkrunfast]

@@PHN-2024 i don't think you know what that word means.

[@GlitzyHeels]

Why would she assume the 2nd mortgage was included in the 1st mortgage? Any responsible person would ask those questions at closing, and if her monthly payment stayed the same...anyone would know they were not combined.

[@nick_aurorav2964]

She could’ve been easily lied to or given the impression that the 2nd mortgage took care of all her payments. Not everyone is a mortgage expert just because they own a house.

[@GlitzyHeels]

@@nick_aurorav2964 still, why would the mortgage payment that she says she continued paying and never missed. Not have changed? The monthly payment amount would have changed. That should have been a red flag when it stayed the same. Don't get me wrong I feel for her, but she is partially to blame.

[@LyricalGoddess1]

She may have applied for a consolidation.

[@JessTalkTV]

That confused me too. Unless your second mortgage is with the same bank, I don't know how anyone would think that

[@26stanzo]

The original loan was an 80/20 purchase loan, she did not take out another loan in 2014. She got a modification in 2014. The commentator was incorrect. When she took out the modification, the bank informed her that the 2nd was charged off. Not sending out monthly and or quarterly statements is a responsibility of the servicer. The servicer gets paid for that . Laying in wait is what the unscrupulous lenders do to take people's properties.

[@christopherbradley5575]

Im a veteran too. 25 years in the Army with 3 combat tours. That being said, I am sick and tired of people using the vet card.

[@sharita7270]

???

[@christopherbradley5575]

@sharita7270 People using their status as veterans to act like they deserve some kind of special consideration or sympathy. It's all bvllsh!t.

[@timallison8560]

oh come on, "when you lose track of your loans" give me a break.

[@Westcoastguy]

Exactly. She realized they weren't billing her for so long that maybe THEY lost track of it and she can get away with it. But in the end it's completely her fault.

[@michah321]

How does a company LOSE TRACK of a debt they are owed??? Ten years with no bills? come on

[@garbarradio]

Veterans or not, you are accountable for ALL of your debt. Period.

[@adrienneadams8187]

You got that right

[@tranger4579]

They are too used the the red carpet entitlement. It’s been like that for years.

[@crinklecut3790]

I’m a veteran. Nobody ever gave me anything. I also don’t cry PTSD every time I do something I’m ashamed of. I’m sick of the excuses too.

[@choosey87]

Did you pay attention to the video or are you just slow?

[@Venomater2012]

It's corrupt for a lender to not let the debtor know how much they owe in total for both home loans. The person taking another loan or a modification of the loan should be notified of all terms and debts that will be owed before it's signed. It's sad, it doesn't help that this is one of the few countries where you own nothing. In other countries, they can not touch your property but can turn off your utilities if you're not paying them. The U.S. is advanced in so many ways, but so medieval when it comes to basic human rights and common sense. It dwarfs the reason sometimes for living in such a western country.

[@novajtv]

"DON'T F with your mortgage" - dad

[@orchfantube]

My situation doesn’t involve a second mortgage or home equity loan, but when my mortgage was sold to a new mortgage servicing company for the 2nd time in one year, the taxes got paid out of escrow just fine, but homeowners insurance did not. It caused a big hassle to get sorted out and I found out about it when the insurance company let me know that they had not been paid by the mortgage company. So, I'm just saying that all this reselling of mortgages to different servicing companies can cause problems at each transfer. If she had the understanding that her one payment was covering both loans, just like my one payment was supposed to cover principal, interest, taxes, and insurance and then all of a sudden it didn't? I can see how it can happen.

[@jessnunez7556]

It’s not a zombie mortgage if you knowingly took out the loan

[@justadudeintheworldman.120]

Yea, but it is predatory and shady. In theory, I could loan out 10k to a homeowner with the lien/mortgage as collateral and then disappear for 20 years and then come collect the 10k plus interests and fees or if unable to pay, take the house. She was hustled. I’m sure these companies datasets are people desperate and in pre foreclosure and with tax lien issues.

[@DamienEarth]

Can’t come to this conclusion without speaking to the lender .. the actual rep! If I sit and tell you everything is combined into one payment, including what you owe on the last car and show you on the paperwork in order to get this sell as a car dealer .. fold some stuff up in an envelope then hand it to you. You have no idea what I actually typed up until you get your first bill. In her case, she got the first bill and every bill for 10 years.. thinking that was it. She hasn’t spoken to them since 2013 remember..

[@mr.fluffy770]

BS…. This company is illegally trying to collect on a loan that has passed the statute of limitations. Sue them.

[@labnine3362]

Right! The "zombie" is the deadbeat who acted confused after not paying for years and years.

[@TheOneinthewoods]

​read the mortgage contract. She took a loan out and thought the bill would just dissappear????

[@rbtdoster]

Ah, look...here comes 2008 again, just spun in a new way. But, by all means, let's just keep letting banks operate as they wish.

[@Lillith1203]

Tougher regulation on lenders should have been taken care of after 2008, obviously that did not happen. We also now have a failing economy, layoffs in tech are on the rise, and home sales are cooling off fast, the recipe for another recession.

[@Hannah-f2b7e]

1776?

[@swimmingalong9627]

Need Glass Steagall Act back in action.

[@Lillith1203]

@@swimmingalong9627 Leave it to Clinton to repeal it. Yes, its definitely needed again.

[@SkiSkillsMontana]

They took out a loan, but they didn't pay a penny.How's it anybody else's fault?But there there's. I hope she loses her home.That is very unresponsible behavior

[@carlosgamez6230]

As buffet once said, never borrow against something you don’t own yet

[@markporter2642]

I'm a veteran also and one thing I learned in the military is personal accountability.

[@gimusic5047]

There was no way for her to know.

[@gimusic5047]

@user-xc5es2ut7t Again, there was no way for her to know that she needed to send 2 payments, and they conveniently did not let her know or send the LAW mandated statements. How can this be a thing that “thousands of homeowners” fall victim to? (See video title) + CBS has an article with 3 examples including her. This practice is appalling.

[@shansbo217]

​@user-xc5es2ut7t Also, if the mortgage company was legit, they would not have just settled out of court.

[@jacobawojtowicz]

​@@gimusic5047any payments you are legally responsible for, you signed for. "There was no way for her to know" is the most delusional thing I've ever heard.

[@marykirmo]

This looks like a predatory lending scenario.

[@zoelynch295]

This example is not believable. No one thinks they get a second loan and the old loan and that payment covers the new one also. Come on.

[@bf6159]

Banks do not make such mistakes, they make decisions to do things in a specific way in order to achieve a desired financial goal. Thus, it's by design, not due to an error. The fact this is not an isolated incident, proves it's by design.

[@Cchee]

Living beyond your means is scary 😱

[@lesliepropheter5040]

Check your life insurance policies, who your money, house goes to. My elderly friends went to change their recipient and found that everything goes to Wells Fargo….of course they changed it back.

[@Lillith1203]

Wells Fargo, biggest crooks there are, anyone with an account there needs to close it and go to a credit union.

[@jimmyjay689]

We have families and children

[@marieb8711]

she must be so happy asking for another loan and dont have to pay for it.. now its biting her back

[@deneisefrancis8004]

Bought 2 homes, in 2 states, sold them, and loving the rental life… been there done that, do not plan to buy again.

[@CeicelRockMonster]

As a vet as a vet as a vet ….. I wonder if she’s a vet?

[@TheOneinthewoods]

Lol! True tho. Looking for free pity

[@SH-sg8or]

I’m sorry. You don’t forget borrowing money. You signed a contract. If you”forgot “ about it, it’s on you. I don’t care if you are a veteran or the pope. Personal accountability people.

[@javaskull88]

How do you “lose track” of a home loan?!

[@eds5977]

Don't get a second mortgage. .

[@angstbringer2992]

They're doing this on purpose, so they either get paid so much more or get this poor people's homes

[@sasham1280]

Sounds to me people aren’t paying attention , it’s her responsibility and everyone else to pay attention and read the fine print and ask questions. The minute she didn’t get a statement she should have been on the phone.

[@rickyayy]

Exactly the onus is on the consumer to be diligent with their money.

[@davidterrell1242]

Law requires lenders to send regular statements with the amount owed. If they don't send a statement for 10 years, certainly the lender has some culpability in the situation. Also, they claim that she didn't make a payment on the 2nd loan for 10 years, ofc she thought she was good. They didn't even as much send her a single late notice in a decade.

[@bobbie2414]

Sounds like a 2nd mortgage is a scam.

[@fordsrestorations970]

I've already lived to tell about the massive Carnage in the George Bush housing market crash. Guys I suggest that you get a lawyer to look over your agreement with the bank right away ! People are already saying that the economy in the next couple years looking weird so I hope you don't get caught in the bad storm of trouble

[@dr.markevers8331]

Yep, the 2nd mortgage she took out in 2014 is definitely George Bush’s fault. Now is it W or HW that did this? Let me know.

[@rooksandcastles]

People, listen to the story. She got a loan modification, meaning she more than likely got a cash out refinance or an IRRL. If it was a second mortgage, then she should have gotten statements on said loan separately. She didn't, which means the bank never notified her that she owed the mortgage. Also, if you are not getting regular alerts or statements in the mail, you will forget; many of us would forget. She wasn't negligent like many of you are saying, so please stop. HELOCs and Home Equity Loans are not loan modifications, they are separate loans/lines of credit.

[@audreyl704]

[@GlitzyHeels]

You don't just simply lose track of a mortgage payment. The reporter clearly said it was a second mortgage. She couldn't have believed that her original first mortgage payment also covered the second loan. If they put the second loan at the end of the first mortgage loan then she wouldn't be in default, she would just continue paying on the balance until it was paid in full. Something doesn't add up.

[@ronkeal4483]

Loan modification would have been for the first mortgage only. Has nothing to do with the second mortgage unless she did a refinance, which she did not.

[@26stanzo]

@@ronkeal4483 The commentator did not report this correctly. She had a 80/20 purchase money loan. She did not pull out a second in 2014, she got a modification due to falling behind on her mortgage due to being injured in Iraq. Both loans were taken out at the same time in 2006 when she purchased her home with the same bank, Bank of America. The bank approved her HAMP modification and at that time she was given erroneous information that she no longer needed to pay the 2nd, because it was charged of. She never missed a payment on her modification and then 10 years later once the equity rose significantly, the investor, Real Time Solutions (RTS) hit her with the Notice of Default. As a loan servicer, it is your responsibility to send out monthly and or quarterly statements which they did not do and just waited for interest and lender fees to accumulate so that they could benefit from homeowners lack of knowledge of the rules of the game. Google RTS and read the numerous complaints of the same nature.

[@ronkeal4483]

@26stanzo she opened both loans in 2006. The modification was for primary loan, not both. The charge off is not a cancelation of debt, so the second mortgage is still valid. Whoever told her she didn't have to pay should be pursued if she can prove with documentation. I believe the company is RTR, not RTS they are a servicing company or debt collector, not an Investor. You don't wait ten years hoping equity increases before you send a notice of default. It doesn't work that way. When a servicer receives an account, they are required by law to send documents, letting the person they are the new servicer of the loan. I am not buying it.

[@viviorko]

They didn’t even bother to cover the laws for these mortgages and research the minimum requirements for collections.

[@thetaekwondoe3887]

I hate this boohoo crap. Her being a veteran has nothing to do with this story, but they're trying to build sympathy for stupidity.

[@Scorpio89-q8u]

This sounds BS to me how you take out a loan and you don’t ever check to make sure it’s being paid. Even if it gets sold you know you took out the loan you never check on it call into customer service nothing?

[@matthuber9936]

Total entrapment - This poor lady is being taken advantage of by predatory banking. I hope she wins... Maybe she has enough publicity. But think of all the other people's homes who have been stolen away from them! And I don't even own a home (or have any prospect of ever being able to afford $2.9 M for a lot)...

[@carloscervantes8196]

People bout to learn why renting is better

[@johnnywang206]

If it’s against federal law then what are the penalties if they don’t send out statements?

[@apara2005]

I see a lot of comments asking why get a second loan when you are paying off the 1st. I guess none of you fell on hard times and needed money. Thats the best thing about homeownership, you can borrow money from your home. This can literally happen to anyone. My morgage lender is so irresponsible (which i didnt know until i closed) that i constantly need to call them about sending letters so i can pay my mortgage.

[@jenniferhansen3622]

Can't people just set up autopay for the second mortgage the same way they do for the first? These days nobody should need a letter to come in the mail.

[@chanchan5349]

Many companies today don’t send paper bills either.

[@carliushardin4229]

Beat them at their own game. They've tried to get me twice. Once with student loans, they had to forgive 10k of my loans. Once with my old car and they had to forgive the remaining 12k and sent me a settlement check for the predatory fees I was paying, to pay my bill. Out smart them at their own game.

[@akplayz1154]

Care to advise us on how you managed that? I would really like to know.

[@Janet-b7i]

Why no indictments against this crime?

[@lulajohns1883]

I wonder what the circumstances are on these 2nd mortgages. Where they serviced by the same company? Something is very fishy. Class action lawsuit

[@ProgrammingWIthRiley]

Oh come one. You done forget about a second mortgage. This is how parents forget they abuse their kids.

[@iii9266]

I've NEVER boughten a house where I DIDN'T get a MONTHLY statement and I've NEVER been stupid enough to take out a second mortage...

[@moplum]

I thought there was a 2 year limit on unpaid loans. Forcing lenders to be proactive on collecting.

[@seanrhone5306]

So, she wasn't paying her mortgage and now faces foreclosure; sounds about right.

[@coolrip007]

Too Sneaky! Seems like a setup to take your home!

[@joncoyne6995]

Her debt was sold a long time ago then the vultures got it

[@mlsa9520]

This makes absolutely no sense, lol 😮😂 sounds like it's the homeowners fault. Common sense people.

[@alltruckfleet]

The same thing happened to my dad when he was mis-guided by a VA Loan officer to take out a 2nd mortgage for the down payment and one for the remainder of the mortgage. He made one payment each month to cover both mortgages & escrow. Turns out the second mortgage was not getting paid by the facilitator. Dad lost the house. It was emotionally devastating for him and my mother. Years later a vulture lawyer came after them for penalties after everything was supposed to have been settled. He got a court order, sent a police officer to pick up my dad. (The officer was a good guy, very respectful. He was just doing his job.) Fortunately, by then I was grown and had a decent job & was able to pay the demands to the lawyer. He was going to have my dad put in jail if someone didn’t come up with the money.

[@JohnSmith-xu7ev]

They cant put you in jail for that

[@MariaElena-xr3hw]

I saw this coming. Repeat 2008. Predatory lending and practices means they get the house and money.

[@laurymakesaway6695]

Not surprised it's California

[@jeraldb2868]

Hmm, wouldn’t this second mortgage still be on her credit report?

[@26stanzo]

No. The Fair Credit Reporting act only allows late payments to be on your credit report for 7 years.

[@ibettegarcia8022]

Always happens! You have to be on top of it !!! Bankruptcy is an option to stop foreclosures sales until you get back into a repayment plan in a ch13 filing.

[@Mlogan11]

Mortgage/student loans are not discharged with bankruptcy.

[@andreacraik9757]

Are these companies writing off the debt on taxes? And then waiting past the 10 years to collect?

[@JohnSmith-xu7ev]

They sell the loan and investors foreclose to steal your home

[@shansbo217]

This sounds like a scam by these mortgage lenders. 10 years? They need to write that off and call it a day. If she gets the right lawyer, she wouldn't have to pay them a dime. She should counter sue due to their negligence and scamming. Obviously, she's not the only one they are doing this to.

[@JohnSmith-xu7ev]

They write it off, sell the mortgage to investors that steal your home.

[@dmphotography.prints]

Ex Lender Advice - While it’s your responsibility, because of the docs you sign, there are predatory lenders who will “allow you” to hang yourself by passively watching your account slip into default. I’ve seen experienced and knowledgeable people get taken for a ride on their loans. You’re not alone. ALWAYS take paying mortgages, cars or any secured debt VERY VERY seriously.

[@southernyankee2300]

The warren Buffetts of the US should step up and pay these off for zombie mortgages for any Veteran!

[@The11eleven]

“Lose track of your loans” lol… our lie detectors have determined that this is a lie

[@pgesparky]

If someone loans you money, don't make them ask you every month for a payment. This goes for Family, friends, and banks.

[@allanisbest6916]

Most people commenting have no idea how many of these 80/20 loans were already extremely predatory, hence the great recession of 2007 -2009. A lot of people were told their loans were being forgiven since that was being stated everywhere on the news, which is where nearly everyone got their information at the time, and most of the confusion began. Many people who acquired homes from 2006-2009 will be impacted by this and I'm glad this is getting some coverage to inform people. Most people don't have the funds to lawyer up, so they lose their properties, and the ones that can afford lawyers pay rent and a mortgage on a property they don't own as they hope they win their cases.

[@truediva18]

Those second mortgages are not good. This tells you that you need to be vigiliant about your bills. Find out who is in charge of your loan service. Get them to send you mortgage statements clearly marked. We have to be smarter than these banks and loan servicers.

[@RealAndrewGomez]

10 year old "zombie" debt? In most states in the US, debts are time barred from being collectible after 3 to 6 years or so , beginning from the date of first delinquency. Acknowledging the debt or resuming repayment restarts the clock. People presented with claims involving such time-barred debts should contest them in court. My opinion, not legal advice.

[@tranger4579]

Depends when they file the delinquency. That’s why it’s important to check your credit report. I had medical bills from ten years ago that started coming in all of a sudden despite me calling the doctors about due balances and them saying nothing was due. Had an old city gas bill got 8 years come up last year. When I called I and argued about it the they were so embarrassed that it took 8 years to bill me and took closed it with nothing due. You are correct though argue about the statutes of limitations.

[@kasun1752]

And this is why I don’t take additional loans against my home or refinance, I don’t understand it enough, one day I heard someone saying “ if you don’t understand it don’t do it.” I have so much in my plate to get into another stress

[@primehelper1]

She never closed on the first mortgage, which explains why the second mortgage was only $65 after what she owned in the first place. Her negligence is the loser of the story.

[@dirkrunfast]

you seem pleasant

[@radolfkalis4041]

It DOES appear she was in some way mistaken, I will take that as fact, My issue is 10 YEARS after this transaction, they come after her for making ZERO payments.

[@tl1533]

Until it happens to you. Judge too much until it happens to you.

[@audreyl704]

[@davidterrell1242]

Imagine a landlord letting a tenant stay in their place without paying rent for 10 years before asking for all the money in a lump sum. Ridiculous right? This is basically the same thing.

[@johnnyfive1412]

She didnt notice her monthly payment didnt change after taking out a 2nd mortgage and is now surprised? Seriously?

[@evileyez504]

10 years must be the line, this happened my neighbor, he didn't know and they waited til year 10 to tell him and he lost the home.

[@privateprivate5302]

Is this the same as taking out "equity" on your home?

[@privateprivate5302]

Is this the same as taking out a "home equity" loan on your home?

[@TheOneinthewoods]

Yep

[@MCKD007]

Title 15 1602 u.s.cis all about credit and title 26 some where is the code for repo and foreclosure stateing its illegal to do.

[@WatchingClowns]

Who’s that naive to think you only pay on one loan? Get two credit cards pay on both not complicated

[@CoachE98]

Yup, and then the bank will keep it and rent it out, and jack up the market.

[@giacobbeperales5926]

She was paying the same monthly payment but then it kept going up without her getting a bill

[@sherryvt61]

I hope this lady gets to keep her beautiful home. Shame on those vultures!

[@paengguin9381]

He took out a 2nd mortgage loan for 65K and did not even contact the lender when he did not get a bill? He thought he was going to get away with it. 😂😂😂😂😂😂😂😂😂

[@charlesrosebushes7748]

I'm getting tired of vets thinking it gives them the right to get bailed out - serving your country is not justification for personal negligence. You dont get a stmt for haircuts or food - you just know to get it & psy for it

[@Tom-mu7zy]

The homeowner should have absolutely understood what the refinance was refinancing. As in, "Show me how BOTH the original and second mortgage are discharged by this new loan."

[@patsimmons3123]

I know because I went through this with Capital mortgage they sold my mortgage to another company that’s when I had these supposed missed payments,never missed one payment it was hell trying to get this resolved

[@tranger4579]

Happened to a friend of mine they days from foreclosure.

[@jimmyjay689]

They tried this with us...we called and called till it was resolved...

[@JohnSmith-xu7ev]

They should make it illegal to sell mortgages. I got a friend dealing with that garbage. And many attorneys dont understand banking laws and want you to sell your property to get out of it. Attorneys are rich and dont care you had a home for 20 years.

[@carsonhoover5767]

Any service member that served the country. Should have a house free an clear with no mortgage. As part the the county giving back for their service.

[@Hogan65]

No they should not What are they protecting not America 🇺🇸 f that police , fire, doctors help us not military. They get paid to serve !!! They get free health insurance no not a free pass and she probably voted Democrat so now you get what they give

[@jimmyjames6487]

Even the ones that sit in an office from 9 to 5 ?

[@barringtonmorris90]

Take accountability woman.

[@choosey87]

Did you pay attention to the video or are you just slow?