Zombie mortgages are coming back to life
Planet Money
NPR
4.6 • 30.5K Ratings
🗓️ 10 May 2024
⏱️ 34 minutes
🧾️ Download transcript
Summary
McDonough had fallen victim to what's called a zombie second mortgage. Homeowners think these loans are long dead. But then the loans come back to life because they get bought up, sometimes for pennies on the dollar, by debt collectors that then move to collect and foreclose on people's homes.
On today's episode: An NPR investigation reveals the practice to be widespread. Also, what are zombie mortgages? Is all this legal? And is there any way for homeowners to fight the zombies?
You can read more about zombie second mortgages online at: npr.org/zombie
Correction: An earlier version of this episode description misspelled Karen McDonough's last name as MacDonough.
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Transcript
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| 0:25.0 | One spring morning, a couple of years ago, |
| 0:28.0 | Karen McDonough was having her tea at her dining room table. |
| 0:31.0 | She lives in a cute little two bedroom place in Quincy, Massachusetts. She |
| 0:34.8 | looks at her window to the neighborhood beyond and she sees something unusual. |
| 0:39.8 | They were like 20 cars and they all came at the same time and they parked like in front of my |
| 0:43.7 | house across the street up the street and down the street. I just had this |
| 0:48.9 | feeling like something really bad had happened. She was right. |
| 0:53.0 | Something bad was definitely happening to her. |
| 0:55.9 | And then I saw people get out and then they were like coming to my lawn and I'm like, why is everybody |
| 1:01.9 | at my house? |
| 1:03.2 | Karen puts on her shoes, goes out to the driveway. |
| 1:05.9 | At this point a group of men are milling around the lawn, |
| 1:08.7 | casually dressed, except for one guy who seems to be in charge. |
| 1:12.6 | There was somebody I think he might have had a uniform on or something |
| 1:16.0 | and he had a piece of paper and I said, what's happening and he goes, |
| 1:21.6 | we're selling your house and I'm like. and he goes, goes, |
| 1:24.0 | I'm like, what are you talking about? |
| 1:26.0 | He goes, don't pretend that you don't know |
... |
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