Fannie Mae Is Conjuring New York Zombie Foreclosures!

New York zombie foreclosures are rising from their long-forgotten graves.

Surprisingly, it’s not servicers or New York lawyers leading the conjuring of these long-dead foreclosures. It’s taxpayer bailed out Fannie Mae and Freddie Mac doing it.

New York homeowners discovered they are now facing ramifications for defaulting on their Fannie Mae and Freddie Mac mortgages.

Fannie Mae and Freddie Mac are also pursuing deficiencies judgments on defaults going back to 2009.

The GSEs Are Using Texas Law Firm To Conjure New York Zombie Foreclosures

Fannie Mae has hired Texas-based collections company, Dyck O’Neal, to aggressively pursue unpaid mortgage debt from New York properties. Dyck O’Neal is pursuing homeowners who have been foreclosed on within the past five years. The lawsuits seek to collect deficiency judgments on the balance left on borrowers’ unpaid mortgages after deducting for what was recouped at a home’s foreclosure sale.

Fannie Mae has hired Texas-based collections company, Dyck O’Neal, to aggressively pursue unpaid mortgage debt from New York properties that were foreclosed on within the past five years. The lawsuits seek to collect deficiency judgments on the balance left on borrowers’ unpaid mortgages after deducting for what was recouped at a home’s foreclosure sale.

The only problem is the plan violates New York law. New York law says lenders only have 180 days after a sale date to seek a deficiency judgment. However, that hasn’t stopped Fannie Mae or Freddie Mac. They plan on pursuing homeowners until a New York judge tells them to stop.

However, not everyone who lost a home during the recession will feel the necromantic skills of Dyck O’Neal. Former homeowners who went through a short sale or a deed-in-lieu of foreclosure will not be targeted. Fannie Mae and Freddie Mac are also not pursuing homeowners who successfully fought their foreclosure in court or settled with their lender.

Fannie Mae and Dyck O’Neal also attempted to do this in Florida five years ago. However, the results were a disaster for the GSE.

Also, see:

New York City Files Zombie Homes Lawsuit Against Banks

NYDFS Slaps PHH Mortgage With $119,000 Fine For One Property

Aggressive Fannie Mae Mortgage Foreclosure Defense That Works!

Rosicki, Rosicki & Associates Accused Of Scamming Fannie Mae