Massachusetts Attorney General – Zombie Mortgage Settlement
On October 3, 2024, The Massachusetts Attorney General announced a $10 million dollar settlement with Franklin Credit Manager Corporation regarding Franklin’s practices with second mortgages.
You can read the press release here.
A second mortgage that has worked its way into the shadows is often called a zombie mortgage. The zombie second mortgage lender stops sending monthly statements and stops all communication with the borrower for years.
The borrower will often forget about the mortgage or believe that the mortgage was forgiven or otherwise is no longer valid.
Then years later, the zombie will reappear and threaten and carry out home foreclosures.
The grounding breaking case has a direct benefit to Franklin mortgage borrowers, but also helps lay the groundwork for all borrowers who are being threatened by zombie mortgages.
