Mortgage servicers have halted the foreclosure process for hundreds of thousands of empty homes across the country. That has left many properties deteriorating and the original owners liable for taxes and upkeep. In walking away from such "Zombie" homes, banks are not breaking any specific laws, but the tactic has consumer advocates claiming that the burden falls largely on minorities and violates fair lending laws. American Banker editors also discuss the risks servicers run in terms of reputational damage and the threat of a new regulatory crackdown.

Related article: Banks Halting Foreclosures to Avoid Upkeep