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 go over the steps necessary to get 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, to protect your investment, you should be aware of the risks and take extra safeguards. Here are a few steps you need to do if you want 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.
- Enlist professional assistance. Purchasing a zombie property can be challenging, so you need to have a seasoned real estate agent, property management business, and lawyer on 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.
Investors in rental homes can rely on Real Property Management Teague to help them identify and evaluate available properties. Our local market experts can assist you in conducting a comprehensive market analysis, determining fair rental prices, and maximizing your return on investment. For additional information, [visit or call] a local branch of Real Property Management.
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.