Special Report: Foreclosure Horror: The Zombie Title

While mortgage servicers and lenders may still engage in illegal activities related to foreclosure, affected families won’t be locked out of the homes.

Despite this article being written over 6 years ago, its still an unresolved issue. Banks, Mortgage Servicers and the Government are turning a blind eye to this horrific fact that homeowners “do not have a right” to learn if they bank stopped the sale and left you with a home in ruin, including all the debt and taxes to boot….


The Kellers are caught up in a little-known horror of the U.S. housing bust: the zombie title. Six years in, thousands of homeowners are finding themselves legally liable for houses they didn’t know they still owned after banks decided it wasn’t worth their while to complete foreclosures on them. With impunity, banks have been walking away from foreclosures much the way some homeowners walked away from their mortgages when the housing market first crashed.

“The banks are just deciding not to foreclose, even though the homeowners never caught up with their payments,” says Daren Blomquist, vice president at RealtyTrac, a real-estate information company in Irvine, California.

Since 2006, 10 million homes have fallen into foreclosure, according to RealtyTrac, a number that in earlier, more stable times would have taken nearly two decades to reach. Of those foreclosures, more than 2 million have never come out. Some may be occupied by owners who have been living gratis. Others have been caught up in what is now known as the robo-signing scandal, when banks spun out reams of fraudulent documents to foreclose quickly on as many homeowners as they could.

And then there are cases like the Kellers, in which homeowners moved out after receiving notice of a foreclosure sale, thinking they were leaving the house in bank hands. No national databases track zombie titles. But dozens of housing court judges, code enforcement officials, lawyers and other professionals involved in foreclosures across the country tell Reuters that these titles number in the many thousands, and that the problem is worsening.


Unsuspecting homeowners have had their wages garnished, their credit destroyed and their tax refunds seized. They’ve opened their mail to find bills for back taxes, graffiti-scrubbing services, demolition crews, trash removal, gutter repair, exterior cleaning and lawn clipping. At their front doors they’ve encountered bailiffs brandishing summonses to appear in court.

In some cities, people with zombie titles can be sentenced to probation – with the threat of jail if they don’t bring their houses into compliance.

Read article

Credit: Reuters

Pretium Soaking Up Post 2008 Rental Portfolios with Aggressive Buys in 2021

GTIS acquired more than 4,000 houses in the years following the U.S. foreclosure crisis, when Wall Street-backed investors bought thousands of discounted homes at auctions

Nationwide, Realtor Associations Are Officially Debt Collectors Who Want to Evict Tenants for Non-Payment of Rent.

Alabama and Georgia Associations of Realtors sued the govt over right to evict tenants and the national association is picking up the tab.

Citizens: Here’s Why the Second Foreclosure Tsunami is Wall St. Induced and Gov Endorsed.

Billionaire Koch, Wall St and the U.S. Government Want Your Residential Homes. Citizens, Don’t Let Them Take Your Homes for Pure Greed.

Y’all Circuit and District Court Judges in Federal Courts Should Read How Hands-Off Erbey Is These Days

October 2020, William Erbey pens the following letter…what happened next? Front Yard Residential was liquidated tout suite as they say.

Ocwen Altisource Receive Notice of Termination from NRZ re Mortgage Servicing Agreement

On February 20, 2020, PHH / Ocwen / Altisource were canned by NRZ and Bill Erbey is Upset to Put it Mildly, Just Read Altisource’s Form 10-K (2020).

There is No Direct Relationship Between Ocwen and Altisource per Neagle v Altisource (9th Cir., 2020)

Extract from Form 10-K (2020) Ocwen accounts for 54% of Altisource Revenues….Altisource believes that any action taken by Ocwen to redirect these service referrals breaches Altisource’s agreement with Ocwen.

New York’s Battle Against Zombie Homes

Published Date; 19 Dec., 2019

New York Gov. Andrew Cuomo signed legislation granting local cities more power in fighting against zombie properties, according to a news affiliate out of Albany, New York. 

The law will authorize local governments to compel mortgage lenders to “fast track” foreclosure properties or release the abandoned property to allow for resolution on a local level.

“Zombie properties are plaguing communities all across our state, driving down property values and burdening our taxpayers,” Cuomo said. “By making it easier for local municipalities to deal with these abandoned and unmaintained properties, we are helping to preserve homes and protect the quality of life in our neighborhoods.”

The New York City Department of Housing Preservation and Development  (NYC HPD) identified over 3,000 zombie homes in the city. Most of the homes are in areas that are still recovering from the impacts of the Great Recession.

Leila Bozorg, Deputy Commissioner of HPD, said a large part of this team’s work involves collecting data on such homes and the extent of the challenge of rehabilitating these properties. She told Fox News that new laws allow them to hold financial lenders more accountable once a home falls into foreclosure.

NYC has also partnered with organizations like the Center for NYC Neighborhoods to help homeowners who have fallen behind on their mortgage payments to find funds and help prevent the creation of more zombie homes.

“We send people out to survey homes to try to document where are zombie homes in New York City and what’s the extent of the challenge,” Bozorg told Fox News.

New York neighborhoods such as Central Brooklyn, Southeast Queens, northern Staten Island, and parts of the Bronx, particularly, have a higher number of distressed and abandoned properties compared to the rest of the city, according to HPD data.

According to a report by Curbed, the city saw around 18,000 foreclosure filings in 2007, when the foreclosure crisis first hit New York. Today, there are at least 2,000 abandoned and deteriorated homes many of which are in the process of foreclosure.

Special Report: Foreclosure Horror: The Zombie Title
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Laws In Texas is a blog about the Financial Crisis and how the banks and government are colluding against the citizens and homeowners of the State of Texas and relying on a system of #FakeDocs and post-crisis legal precedents, specially created by the Court of Appeals for the Fifth Circuit to foreclose on homeowners around this great State. We are not lawyers. We do not offer legal advice. We are citizens of the State of Texas who have spent a decade in the court system in Texas and have been party to during this period to the good, the bad and the very ugly.

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