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Zombies are coming!
Like a scene from “Night of the Living Dead,” they will come into your home and take over. Zombies are everywhere; just when you thought it was safe, the zombies appear. Think about getting a pool; the zombies will take it. Renovation’s a great idea, but the zombies will come.
Zombie mortgage, or at least the term, was coined in 2008 after the crash of banks and the real estate business. What exactly is a zombie mortgage? It is a secondary mortgage when purchasing a house. Jack and Jill can’t afford the 20% payment, so they borrowed from their aunt in Peoria to secure the house. The bank has a 30-year mortgage on the home, and they need good reason to foreclose. The owners are paying the first mortgage, not the second; they have their own arrangement. However, the secondary holders of the mortgage can foreclose whenever they want. Scary, “Night of the Living Dead,” scary.
Usually, it is assumed that the secondary mortgage is forgiven in six to ten years, and the loan lies dormant for years, basically forgotten about. Surprise, that isn’t always the case.
Jack and Jill are getting divorced; Aunt Hazel from Peoria is Jill’s aunt. What could happen if the aunt calls the note in? It’s a really messy divorce; Jack cheated on Jill, and Jill wants revenge. The aunt sends Jack a foreclosure notice. Meanwhile, Jack has to pay and vacate the home.
Jill, being Aunt Hazel’s favorite niece, assumes ownership. This is a real-life scenario.
In the last two years, ten thousand zombie mortgages were called in for payment in New York. This is happening every day during the week.
In the event of a zombie attack, remember that they aren’t that smart but awfully strong. Make barricades against all doors. Don’t open windows and get to high ground; they can’t climb.
The CDC wants you to be prepared. They have a practical handbook available. Your guide to the “apocalypse.” Similar to hurricane preparation.
Stock up on water, wine, and garlic.
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1 Reply
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Great 👍 writing, Peter.