cover of episode Planet Money: Zombie 2nd Mortgages

Planet Money: Zombie 2nd Mortgages

2024/9/17
logo of podcast 99% Invisible

99% Invisible

Chapters

Karen McDonough, a registered nurse, discovered her home was facing foreclosure despite being current on her mortgage. A group of strangers appeared, claiming she owed a long-lost debt from a second mortgage taken out during the housing bubble. Confused and scared, Karen sought answers, ultimately finding herself at a beach contemplating her situation.
  • Karen McDonough faced foreclosure despite being current on her primary mortgage.
  • The foreclosure was due to a 'zombie' second mortgage from the 2008 housing bubble.
  • Karen had been told the second mortgage was forgiven after a loan modification.

Shownotes Transcript

Karen MacDonough had paid her mortgage for years, raised her family, and lived a quiet life in her Quincy, Massachusetts home—until one day, a group of strangers appeared on her lawn, claiming her house was up for foreclosure. What followed was a surreal discovery of “zombie mortgages,” forgotten second loans from the housing bubble era that have come back to haunt homeowners like Karen. As real estate prices rise, debt collectors are reviving these dormant debts, threatening homes across the country.

This episode is from our friends at Planet Money, a podcast about economics...possibly the biggest thing that we all collectively try not to think about, only to have it greet us at the grocery store, at the gas station, even in our homes. This episode illustrates how massive forces pull at the economy like tides and create ripple effects in our lives, like how a decade-old loan can suddenly come back to life and take everything away.

Subscribe to Planet Money) wherever you get your podcasts. They also have a digital piece with further reporting on Zombie Mortgages from NPR’s Investigations Team. You can find that at npr.org/zombie).

Subscribe to SiriusXM Podcasts+ on Apple Podcasts to listen to ad-free new episodes and get exclusive access to bonus content.