zombie mortgage

noun

A second mortgage which a debtor falsely believes to be forgiven or paid off, typically arising from a mortgage lender selling the debt to another servicer without notifying the borrower.

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Meanings

nounzombie mortgage (plural zombie mortgages)

plural zombie mortgages

  1. informalbusinessA second mortgage which a debtor falsely believes to be forgiven or paid off, typically arising from a mortgage lender selling the debt to another servicer without notifying the borrower.

    In other words, more than 500 zombie mortgages in a single state that are now coming back to life as companies file a form with the state indicating they intend to foreclose on the property.

    2023 May 10, Chris Arnold, et al., “Zombie 2nd mortgages are coming to life, threatening thousands of Americans' homes”, in NPR, archived from the original on 22 Jul 2024
Cite this entry
APA

zombie mortgage. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/zombie%20mortgage

MLA

“zombie mortgage.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/zombie%20mortgage. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “zombie mortgage,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/zombie%20mortgage.

Source: zombie mortgage on Wiktionary, CC BY-SA 4.0.