Zombie Foreclosures Haunt Illinois and Florida
Halloween is just around the corner so this article is about a problem called zombie foreclosures. This is not to be confused with the zombie apocalypse that some conspiracy theorists believe in because zombie foreclosures are in fact real.
A zombie foreclosure is simply a home that is in pre-foreclosure and the home remains vacant during the foreclosure process. Zombie foreclosures typically occur when homeowners receive a foreclosure notice and leave the house shortly thereafter. What the homeowners do not realize is that the foreclosure process is typically lengthy and the title has never officially been transferred. Sometimes the foreclosure is cancelled and a sale is never held. This creates a zombie foreclosure that haunts a neighborhood and the homeowner for a long time.
Zombie foreclosures can create a slew of problems for homeowners that abandon their homes because the homeowner is still responsible for debts and costs such as taxes, HOA fees and penalties, and city violations. These debts can accumulate for years and the homeowner is responsible whether they realize it or not.
- The government may come after these homeowners several years later for back taxes.
- The HOA can file a law suit against the homeowner to recover unpaid assessments. Most HOAs are struggling which makes them desperate to collect.
- The city or municipality the home is located may send fines for keeping the yard maintained, repairs made, and trash removal.
- The homeowners credit score will be impacted severely due to the lengthy foreclosure process and unpaid debts
Zombie foreclosures are most common in low income areas. The bank does not want to pay for upkeep, association fees, and taxes in many cases. If squatters move into the home or the property becomes severely distressed, the bank may simply walk away and let Uncle Sam take it.
There are over 300,000 zombie foreclosures according to a recent report by Realty Trac. The actual amount of zombie foreclosures is probably much higher since Realty Trac is typically conservative with their reports. Florida and Illinois have the most zombie foreclosures due to the lengthy foreclosure process in these states.
In Conclusion
If you have received a foreclosure notice, it is not a good idea to get up and leave right away. The worst thing you can do is nothing or simply just move away from your problem. It is a good idea to speak with a real estate solutions company that has options and take action to solve your problem. Make sure that the real estate solutions company has been in business for a while and are members of the Better Business Bureau.
“There are risks and costs to action. But they are far less than the long range risks of comfortable inaction.”
– John F. Kennedy
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