zombie mortgage

English

Noun

zombie mortgage (plural zombie mortgages)

1. (informal) A second mortgage which a debtor falsely believes to be forgiven or paid off, typically arising from a mortgage lender selling the debt to another servicer without notifying the borrower.
   • 2023 May 10, Chris Arnold, et al., “Zombie 2nd mortgages are coming to life, threatening thousands of Americans' homes”, in NPR‎^[1], archived from the original on 2024-07-22:

     In other words, more than 500 zombie mortgages in a single state that are now coming back to life as companies file a form with the state indicating they intend to foreclose on the property.