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 purchasing zombie properties is not out of the question, you should be aware of the risks and take extra care to protect your investment. Here are a few things you should do if you want to get your hands on a zombie property:
- Do your research: Before you make an offer on a zombie property, you need to know exactly what you’re getting into. This includes investigating the property, the surrounding area, and the current market conditions. If you are unfamiliar with the area, you should contact a local property management business that specializes in investment property transactions.
- 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.
If you’re considering buying a zombie property, remember to do your research and get expert help. With some extra care and attention, you can turn a zombie property into a thriving investment.
Real Property Management Resources works with rental property investors to identify and evaluate properties for sale. Our local market experts can assist you in properly assessing the market, setting accurate rental rates, and optimizing your investment. To find out more, contact your local 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.