California Law Curbs Foreclosures on ‘Zombie’ Second Mortgages

July 11, 2025, 9:01 AM UTC

Californians have more options to fight back against foreclosures over so-called zombie mortgages, second liens that homeowners thought were forgiven or satisfied years ago but still exist.

The protections were included as part of a housing package that Gov. Gavin Newsom (D) signed into law (AB 130) on June 30 and target secondary loans made during the early 2000s that lenders never acted upon when home prices dropped during the 2008 financial crisis.

Some holders of these mortgages have more recently started foreclosure proceedings, with the median California home more than doubling in value over the past 20 ...

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