The VA Servicing Purchase program has helped about 20,000 veterans avoid foreclosure. But Republicans in Congress have been critical of the program, saying it puts too much taxpayer money at risk.
Karen MacDonough of Quincy, Mass., was enjoying her tea one morning in the dining room when she sees something odd outside of her window: A group of people gathering on her lawn. A man with a clipboard tells her that her home no longer belongs to her. It didn't matter that she'd been paying her mortgage for 17 years, and was current on it. She was a nurse with a good job and had raised her kids here. But this was a foreclosure sale, and she was going to lose her house.
Karen had fallen victim to what's called a zombie second mortgage. Homeowners think these loans are long dead. But then the loans come back to life because they get bought up, sometimes for pennies on the dollar, by debt collectors who then move to collect and foreclose on people's homes.
On today's episode: An NPR investigation reveals the practice to be widespread. Also, what are zombie mortgages? Is all this legal? And is there any way for homeowners to fight the zombies?
This episode was hosted by Chris Arnold and Robert Smith. It was produced by Sam Yellowhorse Kesler. It was edited by Jess Jiang with help from Bob Little. And it was fact-checked by Sierra Juarez. Engineering by Robert Rodriguez with an assist from Patrick Murray. Alex Goldmark is Planet Money's executive producer.
An NPR investigation finds that many people with VA loans who got a COVID forbearance are at risk of losing their homes. The VA has a fix, but it could be too late unless it halts foreclosures.
The mortgage executive has agreed to buy a majority stake in the NBA and WNBA teams from Robert Sarver, who is serving a one-year ban from suspension after a report on his toxic behavior.
A study finds that some lenders are overcharging military veterans, raising the cost of their home loans by thousands of dollars. Fair lending watchdogs say people need to shop around and negotiate.
Owensboro, Ky., has enjoyed the closest thing to a V-shaped recovery of any city in the country. Its jobless rate soared in April but by June was back to pre-pandemic levels.
It's a sign that minority, lower-income, and first-time home buyers are getting hit hard financially amid the pandemic. But a vast majority are protected by Congress from foreclosure.
Mortgage giants Fannie Mae and Freddie Mac will start charging an extra upfront fee in September ... as much as $1,500 for a $300,000 loan. Lenders are upset and blame the Trump administration.
