Determining their potential risk of "zombie loans" to local economies

The Issue: Finance companies are taking advantage of a relaxed regulatory environment to pursue “zombie” mortgage loans, i.e., 2nd mortgages that were previously written off by the original lender. These companies pay pennies on the dollar for the rights to these loans and pursue the borrowers for the unpaid principle and accrued interest.

The Problem for zombie loans borrowers: An increased financial burden in an economy already impacted by slow economic growth, geopolitical uncertainty, and escalated inflation of  goods and services.

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