You see, a zombie foreclosure is essentially a home in limbo; it has been subjected to the foreclosure process, but never completed it for one reason or another. Zombie foreclosures have risen across America following the coronavirus outbreak, lockdown, and the subsequent economic fallout. What? If the lender doesn't complete the foreclosure process and sell the home, no one is occupying or caring for the property, so the vacant property often falls into disrepair, creating safety concerns and resulting in an appearance that may lower property values in the surrounding community. Whew! Zombie foreclosure is a situation that occurs when a home is left vacant by homeowners who incorrectly believe they have to immediately move out after receiving a foreclosure notice, thinking that the foreclosing lender is now responsible for the property. Zombie foreclosures typically arise in undesirable neighborhoods with low property values, meaning the cost of following through on a foreclosure amounts to more than the financial gain from completing it. A decree of foreclosure and sale is a statement issued by a court indicating that a piece of property is to be sold when a mortgage has gone into default. Foreclosures are scary in a lot of ways; for one thing, your home could haunt you as a zombie.Vampires also exist in the context of foreclosures. If the homeowners do not pay this lump sum, the process continues and the court rules that the house belongs to the lender. Until a foreclosure goes through, the homeowner continues to hold the title to the property. There were 20,050 zombie foreclosures nationwide at the end of the 3rd quarter of 2015, which is 43% lower than the same period in 2014. They were faced with massive foreclosures on properties that were worth less than the cost of the foreclosure process. To find possible pre-foreclosures in your area, enter your search area on Zillow, then click “Listing Type” and choose “Pre-Foreclosure” under the “Potential Listings” heading. Our quarterly report, highlighting vacant properties – from state to zip code, is one example of how real estate and property data can be used to gain actionable insights into the housing market for risk management and portfolio optimization. You must do all the work and find THEM. A zombie foreclosure occurs when a home is left vacant by homeowners who mistakenly believe they must vacate after getting a foreclosure notice. This also means that an impending zombie apocalypse is likely just on the horizon – highlighting the need for financial institutions to foreclose on vacant properties. In Milwaukee, Wisconsin, about 900 cases in the foreclosure process involve zombie titles. Try to reach out to a local property management company, and see if they have anything in their records. Then, instead of them turning you into a zombie, you will turn them into living productive properties! Real estate data can go a long way in helping you optimize your portfolio and mitigate risk. As a result, the vacated property remains in the homeowner’s name. A homeowner who leaves a property upon receipt of a notice of foreclosure is abandoning the property without understanding the legal and financial ramifications. Investopedia uses cookies to provide you with a great user experience. Zombie foreclosures left by banks also spark anger from local governments – leading to mounting pressures on financial institutions to maintain vacant properties or continue with the foreclosure process. According to ATTOM’s Q3 2020 vacant property and zombie foreclosure report, states where zombie-foreclosure rates exceed the national percentage are clustered in the Midwest and South. The owner of a zombie foreclosure is likely still responsible for maintenance, upkeep, Homeowners Association (HOA) fees and property taxes. Our third-quarter 2020 Vacant Property and Zombie Foreclosure Report highlights that 1.5 million (1,570,265) residential properties sit vacant in the U.S. – accounting for 1.6% of residential property. third-quarter 2020 Vacant Property and Zombie Foreclosure Report, All You could try calling the lender or the loan servicing company, but that will get you nowhere fast. To protect against the effects of a home falling into zombie foreclosure, homeowners should stay in the residence until an official notice to vacate arrives. As a financial institution, how can you stay ahead of the rise of zombie foreclosures and minimize your risk using real estate data? 22 million Americans had lost their jobs. We have heard about Zombie Debt, but we have never discussed Zombie Deeds!. Read on to find out. 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