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Beware the Zombie Mortgage

Debt collectors are relentless in pursuit of money they aren’t owed

Andy Spears
2 min readApr 30, 2023
Photo by Daniel Jensen on Unsplash

They just keep trying.

They won’t go away.

Debt collectors.

Sometimes, they even try to collect on debts that aren’t owed.

I’ve written before about the unscrupulous tactics used by debt collectors to attempt to force payments — even on debts that aren’t actually owed or that are outside the statute of limitations.

Now, there’s a story about debt collectors threatening foreclosure — even on mortgages where the collection is time-barred.

The CFPB explains that some debt collectors will attempt to collect on a debt that is no longer legally owed to them and will threaten foreclosure action in order to secure payment from a homeowner.

“Some debt collectors, who sat silent for a decade, are now pursuing homeowners on zombie mortgages inflated with interest and fees,” said CFPB Director Rohit Chopra. “We are making clear that threatening to sue to collect on expired zombie mortgage debt is illegal.”

The bottom line:

Always proceed with caution when dealing with a debt collector.

Get all claims in writing.

Ask for written proof the debt is owed and is within the statute of limitations.

Consult an attorney or debt advocate if you’re unsure.

Inquire with the Consumer Financial Protection Bureau if you feel pressured to pay a debt you don’t believe you owe.

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Andy Spears
Andy Spears

Written by Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .

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