A zombie property is a property abandoned by its owner after receiving a notice of default from their lender. It is called a zombie property, because the homeowner mistakenly believes that they need to leave the property and stop maintaining it. These properties get the name zombie because many zombie properties are decayed, rotting on the inside (and out) and “bite” neighbors by bringing neighborhood property values down.
While these zombie properties may not refer to actual zombies, they are just as scary to homeowners and the communities they are in.
What are the effects of zombie properties?
The negative effects of a zombie property are:
- You still owe property taxes and will have tax liens if you don’t pay them
- Homeowners’ association dues and assessments still have to be paid
- If you don’t keep up on home maintenance, you can get fines for code non-compliance
- Unpaid taxes, fees, dues, and fines can all end up on your credit report and affect your credit score
The ramifications if there is a zombie property in your neighborhood:
- Abandoned homes pull down property values.
- Squatters are attracted to empty homes.
- Neglected properties are eyesores
- Vandals are drawn to abandoned homes too.
- Abandoned buildings are commonly used for gambling, drug dealing, prostitution, human trafficking, and homicide. Nobody wants that in their neighborhood!
Can you prevent a zombie property?
Yes, you can prevent a zombie property by not going into foreclosure, stopping the foreclosure process, and/or staying in your home until the foreclosure process is over.
Bonus Tip: Like in the movies, stay in your house to avoid the zombies. If you get a notice of default, stay in your home until you receive an official notice to vacate the premises.
Can you buy a zombie property?
Yes, you can buy a zombie property. However, finding and purchasing a zombie property does require some detective work. You have to figure out if you are buying the property from the lender or the homeowner. Many times, the most straightforward way to purchase a zombie property is to track down the previous homeowner and offer to buy the property directly. You can do this by having a title search done or searching through the local county clerks office and records.
Now you know what zombie properties are, the effects of them, how to prevent or buy one.