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Many boarded up, deserted and shabby residences are viewed as eyesores in neighborhoods that are flanked with beautiful houses with manicured grass. The term ‘zombie home’ is said to have been created from news outlets investigating details on the phenomenon of homeowners who were under the presumption that they lost their the home of foreclosure, just to get bills associating with that home years later.
When a home is in zombie repossession, the owner gets a notice, leave in hopes that the bank or a prospective home purchaser will pick up where they left off. Often times this is not the case and the houses are left to languish with the residents’ name still attached to it.
These zombie homes are typically left to rot and wear away due to absence of maintenance. They can likewise bring home values down in the area and are occasionally made use of for unlawful activity such as squatting or illicit drug use.
According to RealtyTrac, there are over 300,000 foreclosed zombie assets across the country. The housing information business that evaluates foreclosure activity created the figure after cross referencing addresses of homes in foreclosure within the first quarter of the year with vacant property data from the Postal Service.
Properties had by banks weren’t included in this figure. In reality, 35 % of all foreclosed assets were viewed as abandoned or the owner had moved out thinking they were free of any liability of the house.
Florida leads the nation with the highest variety of zombies, over 90,000. This was followed by Illinois with over 31,000 and California with 28,000. The zombie trend is a fairly new one and research is constantly continuous.
Banks couldn’t follow through with the process of bearing the responsibility of zombie properties for a number of reasons. The home is a high liability, the wait time to process a filing is time consuming and the bank might be responsible for property taxes and various other expenses with the home.
The previous owner is likewise subject to harsh penalties, threat being sued for back upkeep fees or jail time if the zombie house is not in compliance with zoning laws.
Not all zombie residential properties are predestined to be a hinderance. They in fact can offer the opportunity for agents and residence hunters alike to snag these homes from distressed property owners by means of a brief sale.
RealtyTrac has a feature on its site which will identify zombie residential properties. It’s important that the previous resident know their status once they leave the asset.
Homeowners should not assume that they are not accountable for the expenses connected with the home unless the title is transferred over to the brand-new owner.
If you have experienced this, follow up with your local town to see to it your name isn’t connecteded to the home. Work with a professional realty agent who can help in offering your property.
A property buyer can sometimes find a gem, and cash-in on a zombie asset, provided they take the needed steps to guarantee all concerns are resolved with the house. Would you consider buying a zombie home?