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Zombie properties are homes that have been visibly abandoned but actual ownership has not. The term became popular in the housing industry during the 2007-08 housing crisis when people being unable to make their mortgage payments reached a catastrophic point.
According to ATTOM Data Solutions, a firm that tracks different types of real estate data, zombie properties made up about 3% of all foreclosures in the U.S. in October 2019. These homes can be a good buy, but there are some challenges you should be aware of before signing on the dotted line.
A zombie property occurs when a homeowner is told they are being foreclosed upon, and they leave their home believing they must immediately vacate. The zombie scenario arises when a bank either abandons or inadvertently never completes the foreclosure process, and the house is left in limbo with no one caring for the property.
Zombie properties can be very lucrative investments because they are often able to be purchased at rock-bottom rates. The problem is there are some risks involved with buying this type of property because they’ve essentially been abandoned for often long periods of time which sets the condition for many unfortunate events to occur.
In many foreclosure situations, a home is already left in poor condition. In many cases, the homeowner couldn’t financially keep up with upkeep, or they’ve purposely destroyed the home before they left. Any of these problems or others are further exasperated in zombie situations because there is a high probability more destruction has been heaped up upon the original neglect or damage.
Once a house is recognized as a zombie property, squatters or vandals often decide the property is fair game. They might simply come inside to be destructive, or they may use it for their own purposes.
Additionally, if vandals or squatters leave doors or windows open, animals, including feral cats might have taken up residence.
Once a homeowner has abandoned a property, they can be difficult to locate. Some may have gone off the grid or others have no clue they are still listed on the property deed. The name of the previous occupant who owned the home will need to be removed from the title so this will be a legal detail to address before a purchase can move forward.
Purchasing a zombie property can be a very lucrative investment, but it’s essential to carefully evaluate the condition of the property before deciding to buy it. You might find the effort and expense involved in bringing it up to be habitable might be more than it’s worth.
“I sell your home like it's mine”
A licensed real estate salesperson since 2016, Rob is affiliated with the Briarcliff Manor office of Corcoran Legends Realty. He serves buyers, sellers, renters, in Westchester, Rockland, and Putnam counties. Rob, a native of New York and Westchester County for most of his life, brings an extensive local knowledge of both residential and commercial properties to the table. His experience includes a wide range of property types – single-family, multi-family, condos and mixed use. “Hard to sell” properties is where Rob really excels. “There’s no problem that cannot be solved.”
Rob is certified for many different disciplines in real estate. Cartus Relocation Network Agent, AARP Agent, National Tenants Network (NTN) Agent, Green certified and Pricing Strategies Master. In addition, Rob has completed the Leader’s Edge Advanced training to better serve his clients. Rob has been both associate of the month and top closed dollar agent.
When you work with Rob, you get the feeling you’re his only client. Numbers don’t count, you do. Clients always come first. Each transaction is handled as if it were his own home. Rob strives to make the process as seamless as possible and takes care of all the details, no matter how small. His clients rave about his above-and-beyond service and prompt informative communication. Rob is easy going, friendly, and patient. However he can be a determined and aggressive negotiator when the need arises.
When not out actively working on behalf of his clients, Rob spends time with his wife and two teenage daughters. A devoted supporter of community he sits on several local boards and volunteers for numerous locale nonprofit organizations. He enjoys cycling, hiking, kayaking and winter skiing.
“May your price be right, and your sale be swift!”