Do you want to invest in single-family rental properties? If this is the case, you should be aware of the “zombie property” (also known as a “zombie foreclosure”) phenomena. A zombie property is one that has been abandoned by the owner but has not yet been formally foreclosed on. Potential buyers may face additional challenges because of this. In this blog post, we will define a zombie property and discuss the actions required to purchase one.
What is a zombie foreclosure?
A zombie foreclosure occurs when a homeowner abandons a property before the foreclosure process is completed. If a homeowner defaults on their mortgage, they may believe they must vacate immediately, even if a foreclosure has not yet occurred. They may also leave the property for many different reasons. Because the foreclosure procedure has not been completed, the homeowner still owns this zombie property, not the bank or lender. These properties are frequently left abandoned for extended periods of time, deteriorating and posing safety and property value hazards for the entire community. Furthermore, the owner’s financial responsibilities for the home continue to mount, from property taxes to Owners Association levies and fines – and beyond.
How can I purchase a zombie property?
As you can expect, this scenario can make purchasing a zombie property difficult. While this does not rule out the possibility of purchasing zombie properties, you need to be alert to the risks and take additional measures to protect your capital. Here are some things to consider before purchasing a zombie property:
- Conduct your research: You need to be fully aware of your obligations before making an offer on a house with zombies. This entails looking into the property, the neighborhood, and the marketplace right now. You should get in touch with a neighborhood property management company that specializes in dealing with investment properties if you are unfamiliar with the region.
- Get a good home inspector: A professional home inspection is even more important when you’re considering a zombie property. Be sure to hire a qualified inspector who can identify any and all potential problems with the property.
- Have realistic expectations: It’s important to remember that a zombie property is, by definition, a distressed property. This means that it will likely need both repairs and renovations and may not be up to your usual standards. Be sure to factor this into your offer price.
- Get expert help: Buying a zombie property can be complicated, so it’s important to have an experienced real estate agent, property management company, and attorney on your side. They can help you navigate the process and protect your interests.
Consider your options carefully before making a zombie property purchase and get professional advice. You may transform a property from a zombie investment into a thriving one with a little more care and attention.
Real Property Management Bay State West works with investors in rental properties to locate and evaluate properties that are for sale. You can properly evaluate the market, determine appropriate rental prices, and maximize your investment with the aid of our local market experts. For additional information, speak with your neighborhood Real Property Management office.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.