Require lenders to resolve abandoned “zombie” mortgages

Warren proposes using bankruptcy law to let a homeowner who no longer lives in a property force the lender to complete the foreclosure or otherwise take title. The lender would then assume the property’s ongoing costs, including property taxes and code violations, rather than leaving the former homeowner liable for a property they cannot use. Warren says this is intended to help families move on and reduce abandoned, derelict properties.

Context: The proposal applies to a homeowner who is no longer residing in the property.

In their own words

My plan uses bankruptcy law to “slay” these zombie mortgages by enabling a homeowner who is no longer in residence to force the lender to complete the foreclosure

The source

Fixing Our Bankruptcy System to Give People a Second Chan...

Published: Original date not established; campaign context manually checked
Retrieved: 11/12/2026