Americans Have Wages Garnished and Assets Seized over Homes They Already Lost

By Noel Brinkerhoff, Steve Straehley
Thousands of Americans are being chased by zombies—zombie loans that is.

Many of those who lost homes in the housing crisis last decade are finding that their nightmare still is not over. That’s because banks are still pursuing them over the mortgages they defaulted on, according to Reuters.

Settlements that followed often did not cover the remaining balance on the loan. This has led to “deficiency judgments,” in which debt collectors are now hunting down the former homeowners. In many cases, the judgments result in frozen bank accounts, garnished wages and seized assets.

“The two big government-controlled housing finance companies, Fannie Mae and Freddie Mac, as well as other mortgage players, are increasingly pressing borrowers to pay whatever they still owe on mortgages they defaulted on years ago,” Reuters’ Michelle Conlin wrote.

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