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Articles & Reports
The following articles and reports are free to the public.
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)
NCLC, Zombie 2nd Mortgage Case Update (Oct. 2024)
MA Att’y Gen. Press Release, In Precedent-Setting Settlement, AG Campbell Protects Homeowners From "Zombie Second Mortgages" (Oct. 3, 2024)
Sample Documents
The following sample documents are free to the public.
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
The following court decisions are free to the public.
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).
Model Legislation
The following is free to the public.
NCLC, Statutory Language Addressing Zombie Second Mortgages (Oct. 2024)
Videos
The following videos are free to the public.
Consumer Action & NCLC's Andrea Bopp Stark, Helping Homeowners Avoid Foreclosure (Feb. 6, 2024)
SC Legal Services & NCLC's Andrea Bopp Stark, Zombie Second Mortgages Video (Oct. 31, 2023)
Video of CFPB Field Hearing on Zombie Mortgages with Director Chopra (Brooklyn, N.Y. April 26, 2023) (Note: Video begins at 46:52. Fast forward to that point for best experience or click here.)
Key Weblinks
The following weblinks are free to the public.
CFPB Guidance to Protect Homeowners from Illegal Collection Tactics on Zombie Mortgages
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NCLC Conference Archives
The following NCLC conference material is free to legal aid, NACA, and recent NCLC conference attendees.
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)
Back from the Dead: Dealing with Zombie Second Mortgages (Mortgage Conference 2021)
Back from the Dead: Dealing with Zombie Second Mortgages (PowerPoint)
Using the FDCPA to Combat Zombie Second Mortgages (Fair Debt Conference 2022)
Using the FDCPA to Combat Zombie Second Mortgages (PowerPoint)
Fighting Zombie Second Mortgages
Using the Rules of Evidence to Set Up Wins in Mortgage and Foreclosure-Related Trials and in Appeals (CRLC 2019)
Federal Rule of Evidence 201 and Related Materials
Letters
Using the FDCPA to Combat Zombie Second Mortgages (Fair Debt Conference 2022)
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 (request for information and notice of error)
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)
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)
Motion for TRO (Kumi v. United Asset Mgmt.)
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)
Sample Chapter 13 Lien Strip Order
Conference Videos
The following NCLC conference material is free to legal aid, NACA, and recent NCLC conference attendees.
Fighting Zombie Second Mortgages (Mortgage Conference 2022)
Zombie Second Mortgages (Video)
Using the FDCPA to Combat Zombie Second Mortgages (Fair Debt Conference 2022)
Using the FDCPA to Combat Zombie Second Mortgages (Video)
Back from the Dead: Dealing with Zombie Second Mortgages (Mortgage Conference 2021)
Back from the Dead: Dealing with Zombie Second Mortgages (Video)
Annual Conferences
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The Consumer Law Educational Events Series includes the nation’s preeminent in-person conferences and trainings for consumer attorneys, produced by National Consumer Law Center (NCLC) and the National Association of Consumer Advocates (NACA). The series provides comprehensive training regarding critical issues in consumer law, including the latest developments and trends; strategies and tactics for effectively representing your clients; and opportunities to network with and learn from the leaders in the field.
Click here for more information.
Registration is restricted to those representing consumers.
