Getting Started
- NCLC Checklist for Identifying a Zombie Second Mortgage (Jan. 2025)
Geoff Walsh, NCLC, 15 Ways to Fight Foreclosure of Zombie Second Mortgages (Dec. 9, 2024) - NCLC, How States Can Protect Homeowners Facing Zombie Second Mortgages: Suggested Language for a Second Mortgage Foreclosure Bill (Nov. 2024)
Treatise Content
Home Foreclosures
- 5.3 Statute of Limitations Defenses
- 10.4 Deficiency Judgments
- Chapter 12: Second Mortgages
- 12.1 Getting Started
- 12.2 Statutes of Limitations and Second Mortgage Foreclosures
- 12.3 Authority to Foreclose a Second Mortgage
- 12.4 TILA and RESPA Claims Related to Second Mortgages
- 12.5 Loss Mitigation Options to Junior Mortgages
- 12.6 Contract-Based Claims and Defenses
- 12.7 Defenses and Claims Based on State UDAP Statutes
- 12.8 Laches and Equitable Defenses to Second Mortgage Foreclosures
- 12.9 State Law Foreclosure Requirements
- 12.10 State Laws That Specifically Regulate Second Mortgages
- 12.11 Using Bankruptcy for Second Mortgages
- 12.12 Deficiency Claim Issues Special to Second Mortgages
Mortgage Servicing and Loan Modifications
Fair Debt Collection
- 4.7.3.4 Enforcement of Security Interests As Debt Collection
- 4.7.5.2.3 FDCPA Coverage of Mortgage servicers, foreclosure trustees, foreclosure law firms
Pleadings
Complaints
- Federal Court Complaint Concerning Zombie Debt (Richland & Falkowski) (complaint against foreclosure law firm concerning time-barred collection and threatened foreclosure of second mortgage debt)
- Virginia Federal Court Class Action Complaint Concerning Zombie Mortgage Debt Collection (United Asset Management) (collection of waivedfees and interest; no notice of assignment; deceptive collections; violation of state foreclosure law)
- Maryland Federal Court Complaint Concerning Post-Foreclosure Claims (failure to implement Covid-era forbearance for second mortgage; FDCPA; RESPA; NOE claims; state debt collection, UDAP)
- Maryland Federal Court Complaint Against Zombie Second Mortgage Debt Buyer Acting as Debt Collector (FDCPA; state debt collection act, UDAP, mortgage fraud statute, licensing laws)
- Georgia Federal Court Complaint Concerning Zombie Debt (United Asset Management) (wrongful foreclosure; breach of contract; FDCPA; and TILA)
- Federal Court Complaint Where Assignee of Second Mortgagee Improperly Charged Interest (Interstate TD Investments) (loan assigned to unlicensed entity that used improper interest rate; no statements; failure to correct errors and satisfy the mortgage; aggressive collections)
- California State Complaint Concerning HELOC (contractual interference claims asserted here can be effective in opposing foreclosure of a zombie second mortgage)
- California State Complaint for Wrongful Foreclosure Regarding Zombie Debt (Wilmington Savings) (no loan statements sent; claimed amount inaccurate and unsupported)
Motions
- Memo Opposing Summary Judgment in Connecticut State Case Regarding Judicial Foreclosure Involving Zombie Second Mortgage (defenses of latches, abandonment, breach of contract, TILA)
- Brief Opposing Motion to Strike Answer in Connecticut State Case Concerning Zombie Second Mortgage (foreclosure after 12 years of inaction; defenses focus on state law claims of abandonment and laches; counterclaim of quiet title)
Answers
- Answer in Connecticut State Case Concerning Zombie Second Mortgage (foreclosure after 12 years of inaction; defenses focus on state law claims of abandonment and laches; counterclaim of quiet title)
- Homeowner's Answer in Connecticut State Case Regarding Judicial Foreclosure Involving Zombie Second Mortgage (defenses of latches, abandonment, breach of contract, TILA)
Amicus
- Amicus Brief Arguing that Filing Stale, Baseless Claims by Debt Buyers Violates Fundamental Fairness (April 5, 2010)
- Brief Arguing Defendant Coerced Plaintiffs Into Arbitration Agreement
Orders
- Connecticut State Decision Denying Creditor's Summary Judgment Motion in Case Regarding Judicial Foreclosure Involving Zombie Second Mortgage (defenses of latches, abandonment, breach of contract, TILA)
See also Conference Materials: Complaints; Other Pleadings
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Model Legislation
- NCLC, Statutory Language Addressing Zombie Second Mortgages (June 2025)
Key Links
Sample Documents
- Sample Zombie Second Mortgage Letter (proposing settlement of HELOC, where loan was charged off and no statements have been sent)
- Sample Zombie Second Mortgage Letter (NOE) (notice of error, requests for information, and debt verification)
- Sample Zombie Second Mortgage Letter (request for information)
- Sample Zombie Second Mortgage RFI/NOE
Court Decisions
- Baptiste-Elmine v. Richland & Falkowski (E.D.N.Y. Apr. 1, 2025)
- Listing of Recent Zombie Second Mortgage Court Decisions (Oct. 2024)
- Mass. AG Assurance of Discontinuance in Franklin Credit Management (Sept. 26 2024)
- Ross v. New Residential Mortg. L.L.C. (D. Me. May 14, 2024) (allowing borrower’s claim under Maine statute requiring good faith servicing conduct; claim based on servicers’ mishandling of modification requests regarding a 2004 80/20 mortgage).
- Warren v. Specialized Loan Servicing, L.L.C. (C.D. Cal. Mar. 1, 2024) (“unfairness” prong under state UDAP law satisfied with allegations that owner of HELOC loan proceeded to foreclose without complying with California statute that mandated consideration of loss mitigation before foreclosure, referencing 2023 CFPB guidance on zombie mortgage and the FDCPA).
- Cruz v. Cameron Fin. Group, Inc. (D. Ariz. Jan. 29, 2024) (denying motion to dismiss claims that servicer’s failure to pursue payments on the second mortgage for thirteen years constituted a negligent undertaking of servicing under state law, also violation of TILA periodic statement rules).
- Gonzalez v. Specialized Loan Servicing, L.L.C. (C.D. Cal. Sept. 13, 2023) (borrower can proceed with claims under TILA (periodic statements), breach of covenant of good faith and fair dealing, and state UDAP law where servicers provided no communications on second mortgage for fourteen years).
- Novobilski v. Specialized Loan Servicing, L.L.C. (C.D. Cal. Aug. 16, 2022) (refusing to dismiss claims that servicer’s long-term failure to send periodic statements for second mortgage violated TILA, the FDCPA, and state debt collection laws).
- Kumi v. United Asset Management, L.L.C. (N.D. Ga. Dec. 7, 2021) (granting preliminary injunction against non-judicial foreclosure sale, finding likelihood of success on merits of TILA periodic statement and notice of transfer of ownership claims involving second mortgage).
- In re De Los Santos (Bankr. D.R.I. Apr. 30, 2024) (order by default sustaining objection to proof of claim for zombie second mortgage debt).
- HSBC Bank USA v. Nathan (Conn. App. Ct. Jan. 14, 2020) (foreclosure delays that wrongfully and substantially increased indebtedness and hindered ability to cure default can be basis for laches defense to judicial foreclosure; proceedings involved foreclosure of first mortgage).
- Amos Fin. Servs. L.L.C. v. D&K Holding Co. L.L.C. (Conn. Super. Ct. Nov. 9, 2021) (granting summary judgment to borrowers, discharging mortgage debt on grounds of abandonment due to delays in enforcement of mortgage after default; proceedings involved first mortgage).
- Archie v. U.S. Bank as Tr. for RMAC Tr. (D.C. Super. Ct. Aug. 5, 2021)
- HawaiiUSA Fed. Credit Union v. Monalim (Haw. Apr. 30, 2020) (trial court erred in not considering borrowers’ laches defense based on four-year delay in seeking deficiency claim after foreclosure of first and second mortgages, discussing prejudice element of laches).
Note link to separate dissenting/concurring opinion. - Mass. Att’y Gen. Assurance of Discontinuance, In re Franklin Credit Mgmt. Corp. (Mass. Super. Ct. Sept. 26, 2024) (Attorney general alleged holder of dormant second mortgages violated state foreclosure prevention statute, state debt collection regulations, and TILA periodic statement rules. Assurance agreement requires, inter alia, that company cease collection and sale of its Massachusetts loan portfolio and pay $300,000).
- Eng v. Specialized Loan Servicing (Wash. Ct. App. Dec. 13, 2021) (borrower stated prima facie Washington UDAP claim with allegations that servicer included demands for payment of time-barred installments in notice of intent to foreclose second mortgage).
MA Att’y Gen. -
Press Release, In Precedent-Setting Settlement, AG Campbell Protects Homeowners From "Zombie Second Mortgages" (Oct. 3, 2024)
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Conference Material
General
Fighting Zombie Second Mortgages (Mortgage Conference 2022)
- Fighting Zombie Second Mortgages (two page issue brief)
- Handout: Fighting Zombie Second Mortgages (outline)
- Mortgage Servicing Claims Chart
Mortgage Strategy Summit: Zombie Mortgages, Successors and Tangled Title, and Loss Mitigation/Homeowners Assistance Fund (CRLC 2022)
- NCLC, Fighting Zombie Second Mortgages (two page overview with links)
- Coalition Letter to CFPB
Back from the Dead: Dealing with Zombie Second Mortgages (Mortgage Conference 2021)
Using the FDCPA to Combat Zombie Second Mortgages (Fair Debt Conference 2022)
Using the Rules of Evidence to Set Up Wins in Mortgage and Foreclosure-Related Trials and in Appeals (CRLC 2019)
Complaints
Fighting Zombie Second Mortgages (Mortgage Conference 2022)
- Sample Complaint (state court complaint to cancel second mortgage, injunctive relief under New York law)
- Sample Complaint in E.D. Cal. (breach of contract and implied covenant of good faith and fair dealing; Cal. Civ. Code § 2924.17 4; TILA; negligence; UDAP)
- Sample Complaint in E.D. Va. (class complaint for failure to notify the assignment)
- Sample Complaint in E.D. Pa. (injunctive relief and damages under RESPA and Pa. Loan Interest Protection Law, UDAP, Mortgage Satisfaction Act, and Fair Credit Extension and Uniformity Act)
- Sample Complaint in E.D.N.Y. (FDCPA and UDAP claims for collection of time-barred debt)
Using the FDCPA to Combat Zombie Second Mortgages (Fair Debt Conference 2022)
- Complaint (Defour v. United Asset Mgmt.) (Va. federal court class complaint for failure to notify of assignment), FDCPA
- Complaint (Kumi v. United Asset Mgmt.) (Ga. federal court seeking FDCPA and TILA damages and injunctive relief)
- First Amended Complaint (Baptiste-Elmine v. Richland & Falkowski PLLC) (N.Y. federal court action for collection of time-barred debts of numerous homeowners)
Other Pleadings
Fighting Zombie Second Mortgages (Mortgage Conference 2022)
- Sample Bankruptcy Pleading (Mass.) (objection to proof of claim and counterclaims)
Using the FDCPA to Combat Zombie Second Mortgages (Fair Debt Conference 2022)
Mortgage Strategy Summit: Zombie Mortgages, Successors and Tangled Title, and Loss Mitigation/Homeowners Assistance Fund (CRLC 2022)
- Order for TRO (Kumi v. United Asset Mgmt.)
- Sample Complaint Filed with HUD (alleging discrimination in second mortgage)
Back from the Dead: Dealing with Zombie Second Mortgages (Mortgage Conference 2021)
Conference Video
Fighting Zombie Second Mortgages (Mortgage Conference 2022)
Using the FDCPA to Combat Zombie Second Mortgages (Fair Debt Conference 2022)
Back from the Dead: Dealing with Zombie Second Mortgages (Mortgage Conference 2021)
Video
Consumer Action & NCLC's Andrea Bopp Stark, Helping Homeowners Avoid Foreclosure (Feb. 6, 2024)
Transcript available here.
SC Legal Services & NCLC's Andrea Bopp Stark, Zombie Second Mortgages Video (Oct. 31, 2023)
Transcript available here.