Zombie Foreclosures Are Rising: What You Need to Know
With mortgage rates still hovering near 7%, many homeowners across the U.S. are struggling to keep up with their payments, leading to a rise in zombie foreclosures. These are properties abandoned by owners before the foreclosure process is officially completed, leaving them vacant and often deteriorating.
According to ATTOM Data Solutions, approximately 1.4 million residential properties nationwide sit vacant, with a growing portion classified as zombie foreclosures. In the first quarter of this year alone, 212,268 homes entered foreclosure proceedings, and over 7,000 of them were left abandoned before the banks took ownership.
What Exactly Is a Zombie Foreclosure?
A zombie foreclosure happens when a homeowner vacates their property after receiving a foreclosure notice, often under the mistaken belief that they are required to leave immediately. However, until the foreclosure is finalized, they still legally own the home and are responsible for its upkeep, taxes, and liabilities.
States Seeing the Largest Increases
While foreclosure rates remain lower than past housing crises, some states are experiencing a notable uptick in zombie properties:
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Missouri: Increased by 85% (from 27 to 50 properties)
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Michigan: Increased by 51% (from 55 to 83 properties)
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South Carolina: Increased by 31% (from 74 to 97 properties)
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Indiana: Increased by 28% (from 215 to 276 properties)
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Kansas: Increased by 26% (from 69 to 87 properties)
Additionally, metro areas such as Miami, New York City, Chicago, Tampa, and Cleveland are seeing hundreds of vacant foreclosure properties.
What This Means for Buyers and Investors
For homebuyers and investors, these properties present both risks and opportunities. Many zombie homes require extensive repairs or legal intervention, but they can also be acquired at below-market prices, making them an attractive investment option for those willing to put in the effort.
Homeowners: What Are Your Options?
If you’re struggling to keep up with mortgage payments, don’t abandon your home. You still own the property until foreclosure is finalized, and there are ways to protect your investment:
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Sell the home before foreclosure is complete to potentially recover equity.
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Look into loan modifications or mortgage assistance programs.
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Rent out the property to cover your payments.
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Consult a real estate professional to explore alternatives and avoid unnecessary financial loss.
Need Help? Let's Talk!
If you’re facing foreclosure or looking to invest in distressed properties in the Las vegas and surrounding areas, I can help you navigate the process. Whether you need to sell, buy, or explore foreclosure alternatives, let's discuss your best options.
*** PLEASE NOTE: I serve Las Vegas, Henderson, N. Las Vegas and the surrounding areas in Nevada and also St. George and surrounding areas in UT***
