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Last updated on November 16th, 2021 at 03:58 pm
During the foreclosure process, many homes have been abandoned by their owners and are not yet repossessed by lenders.
These desolate, deserted homes are difficult to find.
With the critical shortage of homes national the metropolitan areas are being unearthed to find the most vacant zombie homes.
These properties are being sought by investors and cash-strapped buyers.
According to real estate data firm ATTOM Data Solutions, of the approximate 98.8 million homes in the country, 1.3% are zombie foreclosures.
Across the country, only 223,000 homes were nearing foreclosure in the fourth quarter this year, which is less by 3.7% from the previous quarter.
Out of that only a small percentage of homes that are foreclosed will become zombie homes.
Todd Teta, chief product officer at ATTOM said that the hot market and the foreclosure moratorium have reduced zombie properties across the country.
When the bank decides to cancel the foreclosure process after the homeowner has moved away that is a zombie property.
A home that may require too much money or work to make profitable or if the foreclosure process was halted due to a moratorium is a zombie home.
In such a case, the bank doesn’t take any further action on the property.
Buyers may reach out to mortgage lenders, who may have a list of foreclosed properties.
Similarly, the State and local authorities also know zombie properties, because these neglected and inhabited by the homeless could bring down property value.
The national foreclosure moratorium is a reason for a drop in these properties.
Along with the temporary barring of lenders to start the foreclosure process on homeowners with government-backed mortgages, the housing shortage led to fewer zombie homes.
Zombie properties are not good for anybody involved unless they get resold quickly.
They affect the neighborhood and can attract illicit activity leading to the local property values going down.
Flippers or potential homeowners can take the opportunity.
Reference Source: Realtor.com
