Zombie Title

A zombie title is a mortgage that has been in default for more than 90 days and has been sold to a third party. The original lender has already written off the loan as a loss, and the new owner is now responsible for collecting the debt.

Zombie titles are often associated with foreclosures, as the home in question has likely been abandoned by the borrower. However, it is also possible for a zombie title to exist on a property that is still occupied by the borrower. In this case, the borrower may be behind on their payments but has not yet been evicted.

Zombie titles can be a problem for both borrowers and lenders. For borrowers, it can be difficult to get a new loan if they have a zombie title on their record. Lenders may also be reluctant to lend on properties with zombie titles, as they are more likely to be foreclosed on.

There are a number of ways to deal with a zombie title. One option is to sell the property. Another option is to bring the loan current and get the title cleared. If neither of these options is possible, the borrower may be able to get a loan modification or other assistance from the government.

Zombie titles are a complex issue with no easy solutions. However, there are a number of resources available to help borrowers and lenders deal with these loans.