Key Insights
What is zombie debt?
Old, forgotten debt that resurfaces, often sold to collectors who try to recover it.
Why does zombie debt come back to haunt people?
Debt collectors buy old debt for cheap and try to collect the full amount, even if it's past the statute of limitations.
What should you do if a debt collector contacts you about old debt?
Ask for written validation of the debt to ensure it's legitimate and belongs to you.
Can making a payment on old debt restart the statute of limitations?
Yes, making a payment can restart the clock on the statute of limitations, making you legally obligated to pay again.
What rights do you have when dealing with debt collectors?
You can request written validation, dispute the debt, and set terms for how collectors contact you.
How can you validate a debt with a collector?
Request a debt validation letter, review its details, and dispute it if anything seems incorrect.
What should you do if the debt collector's claim is valid?
Negotiate the debt, as collectors prefer getting something over nothing.
Chapters
This chapter explains what zombie second mortgages are, how they can resurface unexpectedly, and the potential consequences, including foreclosure.
- Zombie second mortgages are forgotten-about debts that can resurface years later.
- These debts can be sold to collectors who may pursue payment with added interest and fees.
- In extreme cases, collectors can attempt to foreclose on your home.
Shownotes Transcript
