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 could feel compelled to leave right away even if a foreclosure hasn’t started yet. Additionally, they might abandon the property for a variety of reasons. The owner of this zombie property, not the bank or lender, is still in possession of it because the foreclosure process has not yet been completed. These homes are commonly abandoned for protracted periods of time, deteriorating and creating risks to the community’s safety and property value. Additionally, the owner’s financial obligations for the house keep growing, including Owners Association assessments and fines in addition to property taxes.
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, for the safety of your investment, you should be aware of the risks and take extra safeguards. Here are some procedures you should take if you wish to purchase 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 a lawyer by your side. They can guide you through it and defend 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 Peace works with investors in rental properties to locate and evaluate properties that are for sale. You can accurately assess 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.
