Tonight! Zombie mortgages and Zombie properties. 3PM PST 6PM EST

Thursdays LIVE! Click in to the WEST COAST Neil Garfield Show

with Charles Marshall and Bill Paatalo

Or call in at (347) 850-1260, 6pm Eastern Thursdays

Today Charles Marshall addresses some recent developments in loan workout and securitization practice, with a reference also to Neil’s Blog post of March 3 in which he breaks down how in a recent deposition the Bank’s Zombie Mortgage was exposed as a fraud.

There are Zombie mortgages and Zombie properties.

Zombie mortgages are legal instruments that are facially valid, executed, and recorded — but which have no underlying obligation that is secured by the mortgage (or deed of trust). This occurs out of sight of the homeowner who thinks he/she received a loan and now has a lender with a loan account receivable on their general ledger labeled with the homeowner’s name.

Zombie properties are the result of the foreclosure process being concluded on Zombie mortgages, even though there was no unpaid debt and no creditor. The property itself becomes Zombie when the foreclosure is final but the foreclosure mill and its client abandon the property. This often happens because the cost of maintaining the property exceeds its value in poorer neighborhoods.

Entier neighborhoods and even cities were obliterated by Zombie mortgages and Zombie properties.

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