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AG James makes ‘zombie mortgage’ debt buyers pay $480K for chasing NY homeowners facing foreclosure

BCMB1 Trust, First Age LLC, NS194 LLC, Second Start LLC and Southern MBA Trust bought more than 3,000 'zombie' loans; city records name them on three Bushwick lots.

AG James makes ‘zombie mortgage’ debt buyers pay $480K for chasing NY homeowners facing foreclosure
The attorney general's Oct. 23 announcement of the settlement, and Attorney General Letitia James (file photo, 2023).
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New York Attorney General Letitia James announced on October 23 that her office secured more than $480,000 and additional debt relief for New York homeowners from a group of debt buyers that tried to collect expired “zombie” mortgage payments from people facing foreclosure.

Under the settlement, the companies will pay $240,000 in penalties and provide more than $242,000 in restitution to consumers who paid or agreed to pay back debt that had expired under the statute of limitations, according to the Office of the Attorney General. The companies are also barred from seeking to collect expired debt in the future and must amend their demands in existing foreclosure cases to exclude any expired debt. The settlement took effect October 22.

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Featured image: Photo: Joecento via Wikimedia Commons, CC0. Document: Office of the New York State Attorney General. Composite by Bushwick Daily

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