Zombie Debt is debt that has been dead for a while, but does not know it is dead, and walks the streets of residential neighborhoods.

Once upon a time in 2007, a Bank foreclosed on a Home.  The Foreclosure Complaint was filed, a Judgment entered, but then the Foreclosure Sale got cancelled.  Meanwhile the Debt was sold to another company, who sold it off again, etc., until finally one of the mortgage debt-buyers decided to foreclose.

A couple of problems:

  1. The Debt matured when the loan was accelerated, at which point the Statute of Limitations began to tick. The Statute of Limitations runs for five years in this kind of matter, and the Debt was accelerated in 2007. Time’s up.
  1. The Note and the Mortgage were merged into the Judgment. The Note and Mortgage no longer exist; the Judgment exists.


Zombie Debt works because people do not know better.  They fail to question what is happening and do not realize that they may have a legal defense.

Foreclosure Defense is not going to bring your house back from the Debt, but it can help you deal with that Debt and undead Debt that comes back to haunt you.  Seek competent legal counsel for your house that is haunted by mortgage debt.