Infamous Black Tuesday

Today is Thursday, but in 1929 the 29th of October fell on a Tuesday…so did the Stock Market.  In more recent history, we have encountered the Great Recession.  While we continue the recovery, sometimes old credit card debt comes back to haunt, making consumers victims of Zombie Debt. Zombie Debt is debt that has been dead for a while, but does not know it is dead, and walks the streets looking for a victim.  The problem with Zombie Debt is that the debt is matured when the consumer fails to make payments.  Once the debt is matured, then the Statute of Limitations clock begins to tick, and runs for five to seven years (depending on which state the credit card is initiated). Another problem with Zombie Debt is that Zombie Debt collectors will say anything to get you to reanimate the debt; they whisper sweet nothings like, “Send us five dollars.” Beware, even a penny can resurrect the dead debt. Even if you already have a Judgment against you for this debt, you could be faced with a second Judgment for the same debt. The business model for collecting on Zombie Debt is based on numbers—debt-buyers purchase debt in bulk […] Read More

Houses Haunted by Zombie Debt

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: 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. 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 […] Read More

Zombie Debt

The Double Tap and Beware of Bathrooms are a couple of survival rules from the Zombieland movie.  While you are waiting for the Zombie Apocalypse to carry away unwanted relatives, do not lose your head to Zombie Debt. Zombies are generally slow, but relentless, like debts that do not realize they are dead.  People are victimized by Zombie Debt simply because they do not know any better. Once upon a time in 2007, a bank foreclosed on a property, the Foreclosure Judgment was entered, but the foreclosure sale got cancelled.  The debt was signed to another company, which started suing on it in 2013, after the Statute of Limitations had already run on it.  Furthermore, the Note and Mortgage merged into that Foreclosure Judgment.  The Note and Mortgage no longer exist; only the Foreclosure Judgment exists. Though the debt has been dead for a while, it does not realize it is dead and is back in court.    There are business models for going after Zombie Debt—make more money than they lose.  Those companies pursuing Zombie Debt do not expect every case to pay off, but they employ zombie strategy of menace in numbers to make more profits than losses.  […] Read More