What Is a Zombie Mortgage and How Does It Affect You?

A zombie mortgage is a loan that was once placed on a property, but either through foreclosure, modification, charge-off, or other adjustments, the borrower thought it was paid off and done. However, if the mortgage lien was never officially released from the property records, it remains a “zombie” on the books, preventing you from selling, refinancing, or even taking out a new loan on your property.

This issue isn’t just limited to mortgages. It can affect car loans, judgments from lawsuits, and other types of secured loans that were never properly cleared from title records. Debt collectors may later resurface, trying to collect on these old liens, adding interest and fees, and complicating the sale of your property.

The solution is to obtain a lien release, which involves contacting the original creditor or lender. However, this isn’t as easy as it sounds. You must mail a specific package of documents to the lender—no emails, texts, or digital signatures. Include a return envelope, and send it to multiple addresses associated with the creditor. While the process can be tedious, it’s the most reliable way to ensure the lien is properly released.

If you’re dealing with a zombie mortgage or any other type of unresolved lien, don't wait for the creditor to contact you. Start the process yourself and make sure all paperwork is handled correctly. If you need help, you can consult a title agent or an investigator who specializes in these issues.

For more information or help with getting your lien cleared, visit ActualHuman.com and schedule a one-on-one consultation with an expert.