Zombie foreclosures: Borrowers hit with debts that won’t die | KDVR.com – Denver News, Weather & Sports from FOX 31 News in Denver, Colorado: NEW YORK (CNNMoney) — Borrowers are discovering that their foreclosed homes are coming back to haunt them — long after they have moved out.
In these “zombie foreclosures,” borrowers move out after their bank schedules a foreclosure auction only to learn months or years later that the auction never took place or the bank never transferred the deed. That means the borrower still technically owns the house and is on the hook for property taxes, fees and homeowners’ association dues.
Zombie mortgagees team up with HOA Frankensteins. You can check out any time you like, but you can never leave.