Scott and Kari Amable lost their home in 2021 after a debt collector claimed they owed over $200K on a second mortgage—despite tax documents from a decade earlier showing the debt was canceled. Their story isn’t unique. A booming industry now buys “zombie” loans—mortgages from pre-2008 that went dormant, then surged back to life as debt collectors seek to reclaim what’s owed. These firms often pose as investors but focus on aggressive debt collection, demanding large sums under threat of foreclosure. This shady market raises questions about fairness for homeowners who thought their debts were settled. How widespread is this practice? More on Bloomberg Investigates:
https://www.bloomberg.com/news/articles/2025-12-02/video-americans-are-losing-their-homes-to-zombie-mortgages #MortgageDebt #ZombieLoans #Foreclosure #DebtCollection #Banking #FinancialJustice