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 encounter additional difficulties as a result of this. We’ll define zombie properties in this blog post and go over the steps involved in buying one.
What is a zombie foreclosure?
A zombie foreclosure happens when a homeowner abandons a property before the foreclosure process is finished. If a homeowner defaults on their mortgage, they might think they have to go right now, even if a foreclosure has not yet occurred. They may also leave the property for many different reasons. Because the foreclosure procedure has not yet been finished, the homeowner still owns this zombie property, not the bank or lender. These homes are frequently abandoned for lengthy periods of time, deteriorating and creating risks to the community’s safety and property value. 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. Although buying zombie houses is still an option, you should be aware of the risks and take extra care to protect your investment. Here are some steps you should take if you wish to purchase a zombie property:
- Conduct studies: 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 the location is foreign to you, you should contact a local property management business that specializes in investment property transactions.
- Hire a competent 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.
- Possess reasonable expectations: It’s important to remember that a zombie property is, by definition, a distressed property. This indicates that it might not meet your regular standards and will probably need both repairs and modifications. Make sure to include this in the cost of your offer.
- Get expert help: Buying a zombie property can be difficult, 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 Keystone 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.
