Zombies, as you might remember, are fictional human characters that have been killed but come back to some semblance of life as a flesh-eating character. They stumble around as their flesh decays, blood thirsty for living flesh.
According to writer Dick Hogan, you should beware of the “zombie notes.” Hogan posted a news article on June 18, 2011, on a Florida news website. The article was about the recent lawsuit filed by David Cruz Jr. contending Fannie Mae was fraudulent in their dealings with him.
The fraud stems from the foreclosure lawsuit filed earlier by Fannie Mae. Fannie Mae made an offer to release the obligation of a $123,750 note on property owned by Cruz if he would deed the Fort Myers house back to Fannie Mae.
Cruz agreed to the deal and deeded the property back. It appears from court records in the new lawsuit, that Cruz did not get his loan forgiven. Apparently, Fannie Mae had already sold the note when they made the deal.
Hogan penned the term “zombie notes” to explain the mortgage deal Cruz made with Fanny Mae where he handed the deed over in exchange for the note. Cruz must have thought the deal killed the note as agreed, but evidently the note came back to life to haunt him.
Foreclosures have risen to a record level of 1.05 million, eclipsing the previous record of 918,000. That means 26% of all homes sold in 2010 were foreclosures. Those foreclosure numbers aren’t expected to wane anytime soon. Real estate data firm RealtyTrac found that 2.9 million homeowners received foreclosure notices in 2010, with 20% more expected to be in trouble this year.
Foreclosures can also be a leading cause of bankruptcy. There were over 1.5 million Americans who filed for bankruptcy protection in 2010. The numbers seem to be waning, but there high bankruptcy numbers are expected in 2011 as well.
The recession and housing crisis are devastating to homeowners, but issues raised by the Cruz case can be even more frustrating. There is no easy way out of a bad financial situation. It takes hard work, discipline and determination.
If you are facing a difficult financial situation, bankruptcy may be an option. Bankruptcy laws can be complicated, and you made need assistance from a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan area of Wichita, Kansas, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.
Latest posts by admin (see all)
- Free Information Resources for Filing Bankruptcy - August 15, 2013
- When Creditors Change the Rules in Mid Stream - August 13, 2013
- Understanding the Concept of a Claim in Bankruptcy - August 8, 2013