A Santa Clarita realtor is refusing to give up a years-long fight to save a Canyon Country couple’s home after a “zombie” second mortgage forced them into a foreclosure slated for Jan. 24.

In 2009, Art and Jackie Torres were reportedly informed by their lender at the time that their second mortgage was “charged off” and “no further payments would be required,” according to Rich Szerman of Alta Realty Group, who provides free foreclosure defense services to the public.

But then in 2016, they say they received an alarming notice informing them that the loan not only still existed, but had accrued seven years of interest — and the new lender, Trojan Capital Investments, was allegedly demanding immediate payment of $130,000 or they would foreclose on the house.

Related: Santa Clarita Realtor Believes ‘Zombie’ Second Mortgage Crisis Has Reached Epidemic Levels (VIDEO)

“Like many people, they thought it was an honest mistake,” Szerman said. “This was probably the last time Art and Jackie thought anything their second was doing was honest.”

Torres enlisted Szerman’s help to request a loan modification on the second mortgage, which Szerman says was “turned down flat” by Trojan without any explanation, their alleged demand for $130,000 still standing despite the house having no equity, according to Szerman.

Next Szerman claims he submitted a formal request on behalf of Torres to settle the debt for $25,000 — a significant increase from the $3-6,000 guideline he noted is recommended by the federal government in a case like this. However, Szerman says the offer was again met with “nothing more than a ‘no’” from Trojan. 

“No counter offer was given, as would be the normal way to respond to a settlement offer under these conditions,” Szerman said.

Related: Santa Clarita Realtor Fighting For Family Of 5 Being Forced Out Of Home By FCI

With no other choice, Torres then reportedly filed for a Chapter 13 bankruptcy in an effort to get the second mortgage discharged by the courts, which would have been permitted if they could prove the first mortgage was owed more than the property’s value, excluding costs of sale, according to Szerman.

“We thought we had it beat and the judge in the case did all she could, but Trojan got a value of $490,000 to be sustained with the court,” Szerman said, noting this number is important because Torres owed $482,000 on the first mortgage. “So the entire second mortgage — now according to Trojan in an amount over $250,000 — could be enforced. For the lack of a lousy $8,000 in the valuation of the property, the Torres’ are losing their home.”

Szerman’s next move was to attempt a short sale on the house, which he claims yielded an above-market offer at $520,000.

“This is $30,000 more than Trojan’s own declaration of value before the bankruptcy court of $490,000,” Szerman said. “I would have thought that an offer that high that yielded Trojan $29,000 would be thought of as an excellent outcome for Trojan, but nope.”

He continued, “They would rather (foreclose) reflexively than evaluate the situation. I certainly could understand Trojan’s desire to get more money for the property, but that is not possible here and they know it… Trojan will lose more money by foreclosing than by accepting a loan modification or the short sale. So why are they doing this?”

Related: Santa Clarita Realtor Encouraging Community To Call On Elected Officials For Mortgage Reforms Needed To Prevent Foreclosures

While the fate of the Torres home remains uncertain as their Jan. 24 foreclosure date looms, Szerman is urging the community to make their voice heard on the Canyon Country couple’s situation — and the countless other cases just like it whose stories are never told publicly.

“You’ve got to go to your elected representatives. You’ve got to make noise… Call my office — I’ll tell you how to do this,” he said. “I think this is a very unfortunate story, but a great example of how foreign companies are seeking to make money at the expense of honest, law-abiding homeowners.”

He continued, “If Trojan … is doing this to the Torres’, how many other families will they do this to and why? Something must be done.”

Trojan Capital Investments did not return a request for comment made by KHTS as of the publication of this story.

UPDATE: Trojan Capital Investments officials reportedly foreclosed on the Torres home on Jan. 24, according to Szerman. 

To contact Rich Szerman of Alta Realty Group, call/text 661-714-1400 or click here.

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