ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Zombie Title...When The Bank Walks Away From Foreclosure

Updated on June 27, 2013

Many homeowners have made the expected yet wrongful assumption that they are required to move out of their house as soon as the foreclosure complaint is filed, rather than seeing the entire process through to the end and fighting for what is rightfully theirs. A new and emerging pattern of additional bank misconduct has now been discovered. This misconduct involves banks beginning foreclosure proceedings, and then without notification or explanation to the homeowner the bank dismisses the foreclosure. In most if not all cases, the homeowner is unaware that the foreclosure has been dismissed, often times learning this has happened months if not years after the homeowner has moved out of the house. The end result of this bank misconduct is what is affectionately known as a "zombie title".

For many reasons which are unknown to the homeowner, the bank makes the decision to dismiss the foreclosure and walk away from the property. In my opinion, the banks have made a decision as "the cost of doing business" to walk away from these properties, after learning that they have left the titles to these properties in complete shambles with the use of forged/fraudulent and robo-signed documents. Often times, it costs THOUSANDS of dollars to complete an Action To Quiet Title, which is a Court Action to resolve these title/ownership issues for these properties. It is more profitable for the bank to walk away from the mess of their own making, charge off the debt as uncollectable and then further profit by collecting on the insurance from the credit default swaps, etc.

This misconduct leaves these homeowners unknowingly still holding legal title to their properties, in addition to being responsible for all other costs of maintaining their property (taxes, insurance, etc.). Furthermore, these "Zombie Titles" have caused additional financial trouble for these homeowners who have moved out of their properties and have moved on to the next chapter of their lives. Because homeowners often times do not learn that they are still the legal title holder to their property for months if not years after the foreclosure, the property has not been maintained which leads to further expenses for the homeowner. The homeowner may also be charged hefty penalties and fines, in addition to possible legal action due to the house being neglected and being in disrepair. Some homeowners have also been subject to wage garnishment along with further destruction of their credit from which they are trying to recover due to the foreclosure.

It is essential that all homeowners stay in their houses until the foreclosure process is completed, in addition to fighting the foreclosure due to the rampant bank misconduct and abuses. When the homeowner stays in their house through the entire process, the bank will have to file a lawsuit for eviction to remove the homeowner from the house. It is also essential that the homeowner monitors their property/title record in the County Recorder's Office where the property is located to ensure that the documentation is in order, and to initiate an Action To Quiet Title if required.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)