Zombie Mortgages are SEIZING Homes
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- Опубліковано 8 лип 2024
- Imagine waking up one morning everything is normal and you learn your home is being foreclosed on because of a Zombie mortgage you took out back in 2006 and was told you don't have to pay it off anymore due to a modification. Years later they are resurfacing, coming back to haunt homeowners and in many cases, taking away people’s homes. Let’s talk about this newest issue that’s scaring homeowners today.
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Jacqueline "Jackie" Baker
NJ License 1541448
Coldwell Banker Realty
Allendale/Saddle River
#realestate #jackiebakerrealtor #jackiebakersellsnj #homebuyingtips #homesellingtips #realestateinvesting
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It is beyond me how someone can just sell your property without going in front of a judge. So, I can just say you owe me $100K and I can sell your home in order to recover the debt?! Makes me feel like we are i the movie Idiocracy.
"Charged off" means sold to a debt collector. "Written off" means the lender is taking the whole loss and the debt is forgiven.
A debt being too difficult to collect doesn't make it free money for the borrower. If you borrow money you have to pay it back.... usually.
@gooney0 Thank you for the clarification. I didn't know a charge-off was the debt being sold to who-knows-who, who may have every intention of collecting on it.
Most people wouldn't know that would they!
Actually terrifying. I haven't even started looking into the process of buying a house yet but oof.... I want farmland too so that's an extra OOF. So many greedy, shady tactics in the realty system to be aware of
Essentially, the original lender is telling the home owner that the 20% loan is charged off and forgiven, but then they are selling the loan to a different bank or mortgage company. That second company has not been told that the first company told the buyers they had forgiven the loan. Then it becomes a chain reaction of that loan being charged off and sold, charged off and sold, until it gets to a company that will not charge it off and forgive it. Why are lenders allowed to create these predatory situations with people who they very well know cannot afford the house. That situation should be illegal? Why do buyers take on these crazy types of loans (especially ARM loans) if they cannot afford to make the payments?
This is going to become a bigger issue than people realize. Back in 2002-2007 Country Wide was the largest lender, especially in CA. When they went bankrupt they sold all their mortgages. Not one person who bought a mortgage ever got the physical copy signed by the borrower. Those seconds were sold and resold over and over. Often times it got so bad that even when the borrower tried to pay it was rejected because no one knew who owned the loan. Over the past 3 years I have seen all these foreign names popping up claiming they own those seconds and that people better pay up or they will foreclose. It is a huge scam going on.
Why would anyone think a bank would “forgive” a loan?! Banks are in business to make money and nothing is ever forgiven.
@@melindadouglas1673 hey 🌹
Because banks can and have 'forgiven' loans. Next question?
The home value market is outrageous. Why are houses that are 40 year old doubled in value in the last 4 years.
Supply and demand. Economics 101.
@@robertscheinost179 This gets thrown around by a lot of people that dont really understand Econ. I think you are one of them.
its sad, but all it did for me is Make me want to become a realtor.
Morbid story:
sadly my dad passed, and my mom used the Life insurance policy to pay the mortgage off in full. then she tapped into her equity with a variable rate, so i then got the rate locked with a fixed rate refi. due to the refi I know own it and see how much equity the home is now.
I can easily buy a home, so my mom and I will buy her a home and then once she passes I'm gonna either use that home or sale it to buy another home and rent that out so that my renter can finanance the home. by the time my kids are of age. my 1st kid will have my primary homes equity and my second kid will have the rental homes equity.
thats my LIVING will, so that i dont need to die for them to have property or funds. once myself and my spouse dies, that life insurance will pay each kid's home off, so they can buy a rental for THEIR SECOND KID. as long as they have few kids, they can easily have a life insurance policy to counterbalance being landlords and GIVING their kids a home.
all I say is dont buy cars over 50k and dont have debt so that if the tennant cant keep up rent, you won't have the banks down your throat.
100 million illegals live in the US than in 1990
Huge chunks of the housing market are bought up by corporations who are choking the supply.
Moral of the story don't buy a house you can't afford. If you have no money to put down you can't afford the house
And never trust a bank unless you get everything …EVERYTHING in writing and have it notarized.
@JosephGoclowski
even then i dont yrust banks in certain regards.
I do my personal oversight of everything bill and credit card. every single month, even if the card is paid in full. its a pain but I hear too many stories of hidden fees.
Unless you make over 100k a year...buying a home eliminate s m I st of Americans
The moral of the story is PAY your loan. No such thing as a free lunch.
The 1st bank they don't have to pay it back ..... and that's what they are going with.
But over the years due to economic crisis there were forbearance and loan modifications..if you aren't a realtor it's easy to get confused
@@user-bk7pg1ny5l If they don't get it in writing then they have to assume it wasn't written off.
Thee people were told not to worry about it. What part about being mislead or duped do you not get?
The debtors should pay what they owe. Period. Charged off means they are responsible for it.... just means it was sold to a collections agency....
They were told by the lender they didn't have to pay it off because of a refinancing after 2008. Perhaps they didn't ask enough questions and should have demanded documentation, but this is clearly something that should be illegal.
Most people don't know that because most people aren't realtors and/or banks so don't have that expertise!
I had one of those loans back in 2004 i lost my house and had to pay 10% of the second loan (140 K) to settle with them first loan reposed the house
Debt Validation is a real thing folks.
Why wasn't what they were told put into writing? That is just my biggest question when they were told that the 20% part was written off and or forgiven.
The American dream has become the American night mare on elm / USA street..smh ...this is disgusting
And get a Release of Mortgage when you pay these loans off, and file it at the Courthouse;0 at the County Clerks office ;0
They never refinanced? The zombie loan wasn't a lien on Title? The Title co missed the lien? Title insurance should take care of it.
If you owe you pay.
It sounds to me like these lenders delight in being predatory by not making sure the borrowers completely understand the legal jargon words and phrases they use!
Yeah, brilliant. Now consider those who were lied to by misleading assertions...
Unbelievable story. I hope that lady wins her lawsuit.
There's got to be more to that story. Wasn't she served during the foreclosure suit?
Great and informational video thank you Jackie 👍🏻
I truly hope this isn't what this new second mortgages for first time buyers are about - where if you live in the house for 5 years, that loan is forgiven. Gosh, that would be tragic!! Make sure the bank sends you a notarized document stating the loan is closed.
Moral of the story: Always pay off ALL your debts in a timely manner.
Never trust that something is charged off unless you have it in writing.
Preach. I dont trust these "forgiven" loan programs.
Yes!
My mother had it IN WRITTING that the 2nd was written as a charge off and she was not responsible for the second. It was even reported to the IRS as a charge off so she had to pay the taxes due. What happened though was the lender "sold" the paper to some random guy in India. He came after her wanting $70k in back fees (second was only $30k) The guy would never meet with our attorney and would only respond over phone never email. He filed all kinds of liens in court making it impossible for her to sell or refi. In the end our attorney basically said we were being extorted and it was going to be cheaper just to pay the guy and get him to drop the liens than fight him in court when in all likelihood he would never show up.
@@redtiger7268 Oh my gosh! Yeah, moral of the story still: pay off your debts in a timely manner.
@@redtiger7268 Go look at @gooney0's explanation between a charge-off and a write-off.
That is why I tell everyone to understand their loans. Especially, these new 0 down payment loans happening now. Please understand your loan. And make sure you can make your mortgage payments.
Only a written letter from the original lending company is proof that those "20% loans" were paid off or forgiven and buyers should be more diligent in obtaining and keeping those records. Quick phone calls alone mean nothing. In addition, during those crazy times, not only buyers could get 100% financing but also closing costs added to it and all without income verification, just a recipe for disaster, as it happened. Prices, at least here in the North-East, were going up quite rapidly and a lot of people "bought" homes just to flip them without any intention of making a single mortgage payment. It is true about "predatory" practices by some lenders, but it is also true that some "barrowers" should share their responsibility in that recession and what came as a consequence.
Some people who buy homes just aren’t ready
I’m having a hard time feeling sorry for people who don’t pay their debts.
But your government doesn’t pay its debts. They inflate them away. That’s ok?
They get trapped because they make the mistake of trusting the bank without paperwork saying the loan was forgiven. I personally wouldn't have done the 20 percent loan, id rather look for a cheaper house so i wouldn't need it.
@Imbatmn57 I agree I like my eggs in as least many baskets as possible lol
@@Imbatmn57 I made a 20% down payment
@@jag5316 You mean like America 🇺🇲
Great content Jackie, really enjoying your channel
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
Agreed the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around $300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Notice in the one example realestate agents were like blowfly's descending on a rotten carcass. Taking advantage of the homeowners stress. No wonder the industry is quickly becoming like car salesmen. My uncle years ago went to work for a dealer who wanted them to look through the obits and contact the widows telling them their late husband wanted a vehicle. He promptly quit. So same thing. Unethical.
Tha's why I always say titles and deeds cannot be gotten until the original owner is notified. I know of someone who rented in a house that got foreclosed on without the owners knowledge.
Oh my gosh.
But Isn’t there a statute of limitations these banks have to collect ( varies state to state I’m sure ) but here in Rhode Island the statute of limitations on a mortgage debt is 10 years, after the 10 years can they still try to collect from the borrowers who had these 2nd mortgages ?? 🤔
Okay...you used charged off and forgiven interchangably(@10:12)....however, they do not mean the same thing. So....are these people dealing with "charge offs" which is unpaid debt that is still owed, or are they forgiven...at which point there would be very clear documentation stating the terms that need to be met for a loan to be forgiven. They can't be both.
The only zombies in this scenario are the deadbeats who aren't paying their loans.
I bought my present home with CASH. So no mortgage. The money came from the sale of my past house. When I bought it was a good time to buy and I was very lucky to sell the house for two and a half times for what I paid for it.
I feel sorry for people who need a mortgage AND A LOAN in order to buy a house.
This is my dream sir---a cash buy!
I bought my present house with cash also. Since then I've been saving money ($3,500) each month and am looking to buy another house within a year or when houses become fairly priced. I can wait, I have a house now so I'm in no hurry. How people can expect something for almost nothing is beyond my comprehension! They only have themselves to blame. No, I don't feel sorry for them, they don't know how to handle money, like 65% of Americans.
Lucky you. But you are not most people. I suspect you didnt buy your first home with cash.
All of these houses are overpriced
I knew several people that did that yet still had their homes stolen from them due to mortgage fraud. A false mortgage was put on their units and then foreclosed without them even knowing about it. Even fighting in court was going nowhere because whoever put the liens on the unit kept extending the hearings and then not showing up. The guys were pros and this type of scam.
Does no one read their closing documents? It should have said in the re-fi what happened to the second mortgage.
If there was a 2nd they shouldn't be able to refi without the 2nd's subordination. You can modify without this since it's not a new loan, you shouldn't be able to refinance without this procedure
Most people are "too busy" to actually read the fine print when they are getting a deal that's "too good to be true."
What has happened in the past few years when a homeowner with one of there mortgages sells their home? I would think they would have shown up in a title search and would have to be taken care of for the deal to go through.
Hopefully these folks have a letter from the bank saying the 20% loan was forgiven. If it's in writing, can't imagine how the bank would win. If not, could be problematic.
Exactly. Always get these things in writing!
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Waking up every 14th of each month to $210,000 it’s a blessing to I and my family… Big gratitude to Ann Marie strunk 🙌
Hello , I am very interested. As you know, there are tons of investments out there and without solid knowledge, I can't decide what is best. Can you explain further how you invest and earn?
Same, I operate a wide- range of Investments with help from My Financial Adviser. My advice is to get a professional who will help you, plan and enhance your management skills. For the record, working with Ann Marie strunk, has been an amazing experience.
Hello how do you make such monthly?? I'm a born Christian and sometimes I feel so down 🤦♀️of myself because of low finance but I still
believe in God
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So these lenders have been lying to the borrowers about the loans.
Hey 🌹, good day hope you're enjoying your weekend.
I am from Texas I am going buy my house cash and the house market getting ready to pop also soon .
Down, down, down.
@@xavierrodriguez1455 I'm also in Texas waiting for house prices to drop, or knock down current house and rebuild.
Could this indicate that banks are anticipating a drastic drop in home values, soon?
Look that’s bullshit whatever financial institution gave them money fraudulently with a fraudulent mortgage is the one that’s responsible the same as if they issue a credit card in your name to someone else fraudulently. The honest homeowner should not in any way whatsoever be responsible.
What do you think? and why isn’t there legislation through the house and Congress against these fraudulent acts. They honest homeowner or person should not be responsible for the fifth of their credit or their mortgage if financial institution who has loose security measures should be.
“This time isn’t like a 2008 crash” then proceeds to present evidence of a 2008 crash 🤣
Where did I say this is like the 2008 crash?
In 2008 it took 6 months for Congress to deploy TARP. March 2023 when regional banks silvergate SVB collapsed, which rivaled 2008 losses , it took the Feds 48 hours to deploy new lending program and liquidity to the banking system
This is not 2008. Feds will do whatever it takes to keep the world from deflation especially housing market which is the majority of boomers wealth. You can’t tax zero when asset prices collapse
Also govt debtgdp is 120%, if we have debt deflationary spiral, interest rates would skyrocket no matter the Feds do to cap rates and price controls …it’s a done deal. Inflation will accelerate when Feds drop rates
You're right, it's much worse. Just give it a year or so and you'll see.
Every recession and stress in banking system since 2008 , the feds have deployed liquidity and QE. They haven’t even touched the MBS during QT in their balance sheet. Why would Fed abandon supporting the system which they are mandated to do?
Will there be normal business cycles with recessions? Yes. Will the feds allow asset prices to deflate which would kill govt taxes and accelerate deficit and interest payments which is why we still see inflation from fiscal spending? No…again this is not 2008 and even if it is, the feds are so trigger happy , they will never allow the word recession in the dictionary ever again
A lot of homeowners that had a modification are unclear of what the terms are. The primary lender cannot forgive the 2nd mortgage even if it's with the same company. These are different loans and are handled independently. I have had cases where the primary modified and the second mortgage declined modification when it was with the same bank. So unless you got something in writing outside of your primary modification paperwork expect to still owe the debt. And if a debt was charged off you owe it, if a debt was forgiven you will know because the IRS will come looking for their cut. Under HAFA people could get out of the taxes, but that's long gone now. Many people who didn't read their mortgage documents in 2006 also didn't read their modification paperwork in 2011.
Yep.
Jackie, Are down payment assistance program money considered zombie? From what I read, the NJ and PA is forgiven if you remain in the home as a primary residence for 5 years. If those do not apply.... Are you talking about 20% of a personal loan? I thought you could not take out a personal loan or use a credit card to make a 20% down payment. Where are these second mortgage funds coming from?
What's wrong with some financial entity trying to collect on an unpaid debt? These people took out a loan and didn't pay it back. If the bank said your "zombie" loan would be forgiven, why didn't these people ask the bank for a piece of paper stating that (signed and notarized)? Anybody can say anything but without ironclad proof that the bank "said" so, the debt is still outstanding, unless there are laws forbidding the collection of debt because of legal issues like statutes of limitations. After all, these people DID borrow the money. It's a matter of making you cross your "T"'s and dotting your "I"'s. If you thought the loan was going to "go away" because the bank "said so", you thought wrong, as people are finding out. Anybody that did an 80/20 loan bought something they couldn't afford.
On the caleb hammer show there was a young couple that said they just bought a house without paying any down payment. They got a second mortgage for the down payment. So it's happening again. Even if its illegal without notifying the main mortgage company, I think people just do it anyway if some 2nd mortgage company says they can.
I don't feel the way many commenters do. Back during the great financial crisis unemployment was huge. Everyone got bailed out except mainstreet due to moral hazard. The bank wrote off or charged off the 20% loan to ensure the payment of the 80% loan. Then packaged these 2nd mortgages and sold them at a discount like junk bonds. Now the holders of these are trying to collect since homes values have shot up. I hope anyone in this situation wins the battle. Should be a time limit to collect at least there is bankruptcy protection that can wipe this out and she can keep her home
How is ANY of this legal??
Was an arm involved? Libor ?How many times was second sold off?
Seems they were sold off several times in some cases.
@@JackieBaker How many times it was sold off doesn't matter, just like a property with sold off "mineral rights" to the property, or an easement.
*10:11** I agree with you*
Lol Classic movie evil dead scared the heck out of me growing up.
Personal responsibility 🤷♂️
Click bait, Click Bait! The sky is falling! It’s the end of the world !!!! AAAAAAAAGHHHH!!!!
Is this happening just with 80/20 mortgages?
Yes it is
Simple fix….pay your bills!
Its called a loan, pay it.
Pay. Your. Debts.
Ummm ... pay your debt and you won't had this problem.
Wait I don’t get it. People thought that they didn’t have to payback the money they borrowed? Bahahahhaahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahah
Home ownership seems so fraught with peril. If you don't need to buy these days I don't know why anyone would.
what these people were thinking? seriously, how often it happens that strangers gift 77k to other strangers ?
I, tonyotag, am NOT an attorney. Such advise below is just precautions when it comes to getting a serious thing like a home loan forgiven.
I get the confusion of the homeowner, not so much of the lending firm that buys the note backed by a lien. That is the key, homeowners that have been told that the loan is forgiven, then get a letter saying so and demand that the lien on record is satisfied (at the courthouse.) Then have your attorney check the title to see if the lien (of that specific note) has been taken off the title or deed.
Additionally, many lenders are not organized or sometimes a mom/pop investor just buys a bulk package of notes from a bank or other lender and it becomes their responsibility to collect the debt. When you, the homeowner, calls in or the former owner of the note or lender calls the homeowner, do they know who they are talking to (yes, I am talking about both parties on the line) I can see the confusion set in on what was said. The typically conversation between old and new lender trading mortgage notes can sound like a price negotiation of when the payment is made and when....so does a homeowner to lender.
Why should I feel bad that people have to pay their bills or lose their homes? I thought that was common sense. Did you fall and hit your head a few times??
thats great they should have their old loans paid back , they have equity so refiance and pay off your debt.
no free ride. just like a tax lein you dont pay you get OUT
Don't get loans & not pay them back people ;0
In capitalism, greed is always an ever present factor. All the loop holes will be looked at ...
Here in Europe (non-EU and EU countries in the Balkans), we have so many cases of some debt collecting company that bought some debts from banks but also some micro-loan company that went into bankruptcy, and they are adding some crazy interest rates and making from 400-500 euros suddenly people have 9000 euros of debt to them, thus is just an example of what they do. People are fighting that mostly by loans being over 10 years old and therefore expired, but also by the fact that they were not notified nor agreed to their debt being sold to third party. Hope people in US can use similar concept in law to defend themselves
This has to be the dumbest ad ive seen yet, we dont need need GROSS ulgy zombies to show us anything, we get the house market is scary ok this is weird stop ok
It's not illegal. You owe it. You owe it. Nothing is free
Wrong.
@@matthewphillips5483 keep telling yourself that. Being entitled. Lol
@@nick4088 So you think laws don't exist? lol good luck with that.
The borrower become slaved to the lender 🦬💩👀🤦🏽🧠💯