Movies about zombies may not scare you, but zombie debt should.
Unlike the undead creatures featured in popular movies, zombie debt is real and can really hurt you and your family, literally stealing the floor right out from under you. Like the undead who feast on brains, zombie debt — referring to old debts that resurface, only not covered in mud and dirt — can arise from out of nowhere and feast on your present financial state making you wish that George Romero had made at least one movie to teach you how to defeat this hidden monster.
A recent NPR investigation found that thousands of homeowners are facing foreclosure due to zombie mortgages.
You’re gonna need more than a brain-destroying weapon to defeat this zombie. CBS News reports on how one California resident is fighting to get his house back after it was taken from him. Here’s the start of the story:
Jose Arzate once dreamed of a peaceful retirement in a quiet neighborhood in his hometown. A 24-year veteran of the county probation office, Arzate thought he had achieved the American Dream when he purchased a three-bedroom ranch house in Santa Maria, California, 20 years ago.
“As an immigrant, you have a dream, a dream of owning your own home. It’s your castle. It’s for your family,” said Arzate.
The son of Mexican immigrants, Arzate envisioned the family home would be passed on for generations. But while he thought he was building a future for his family through equity in his home, a hidden financial nightmare was eating away at his dream.
“I woke up one morning to find sheriffs outside my door,” Arzate said. “I had no idea this was coming. I was in bed, starting my day, and suddenly, I was being evicted.”
What Arzate was dealing with was a zombie mortgage.
Arzate had modified his loan 13 years earlier, taking out a second mortgage to manage expenses. He assumed his monthly payments covered both mortgages. Unknown to him, he says, the second mortgage had been sold to a different servicer. Arzate said he never got a separate monthly statement for that second mortgage until it was too late.