CFPB Targets ‘Zombie’ Foreclosures

By  |  March 17, 2014
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The Consumer Financial Protection Bureau (CFPB) reportedly is paying close attention to so-called zombie title foreclosures.

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    “Zombie foreclosures result when banks begin a foreclosure – even going so far as to send the homeowners a foreclosure notice – but then abandon it, failing to alert the homeowners, who have often moved out, that they are still responsible for their vacant properties,” reports Reuters.

    Consumer advocates had repeatedly asked the CFPB to address the problem, saying mortgage servicers were not complying with disclosure requirements to borrowers and anti-blight provisions that require them to release liens on properties instead of leaving them in limbo.

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