Zombie Title

Sir Loin of Beef (that's a title). Sir Osis of the Liver (another title).

A zombie title is the title that a homeowner has when:

1. the homeowner knows their lender started to foreclose on their house, and
2. the lender was gonna foreclose on their house, but instead said, “nah,” and
3. didn’t let the homeowner know that they aren’t foreclosing on their house anymore.

In other words, zombie titles are a byproduct of lenders making the jerk move of not simply letting a homeowner know, “btw, we’re not foreclosing on your house after all...just so you know, k thx bye.” The notice of cancellation of foreclosure isn’t a law, so…yeah.

Why are zombie titles an issue? Well, if you think your lender has taken control of your property and is starting the process to sell it off, you’re not going to do your owning-a-property duties, like paying property taxes. And if you own property and don’t pay your taxes, you’re going to get in trouble.

There was an uptick in zombie titles after the financial crisis of ‘07-’08, which only made things even worse for people, if you can imagine that. If you think your house is going into foreclosure and you ask the housing-gods, “can things get any worse?” the answer is yes, yes they can. So watch out, and check in with your lender, because they aren’t legally obligated to have your back.