This podcast episode explores the issue of zombie 2nd mortgages, where homeowners are losing their properties to foreclosure despite being current on their mortgage payments. The episode highlights the distressing experience of Karen McDonough, a homeowner in Massachusetts, who suddenly found her house being sold and sheds light on the consequences of adjustable interest rates and the involvement of mortgage companies in forgiving debts. The investigation uncovers the scale of the problem, with many people facing foreclosure from old second mortgages owned by companies with cryptic names. The episode also discusses the role of investors like David Gordon who buy bad debt and the revival of these zombie mortgages in the current real estate market. It concludes with the ongoing legal battle of Karen and the need for homeowners to fight against unfair practices with the help of specialized lawyers.
