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Real Estate/Development

Sep. 28, 2026

'Zombie mortgage' lawsuits test retroactive reach of California law

Borrowers are invoking AB 130 to challenge foreclosures completed before the law took effect, despite a growing line of federal rulings rejecting retroactive claims.

A new wave of litigation is testing whether California's "zombie mortgage" law can revive claims over foreclosures completed before the law took effect.

John and Marina Akrabian raised that question in a complaint filed Thursday in federal court in Sacramento, seeking to undo the 2019 foreclosure of their Lancaster home under AB 130. The law, which took effect July 1, 2025, was designed to protect borrowers from dormant subordinate mortgages that resurface after yea...

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