Ever wonder what Vampire REO’s and Zombie Foreclosures are? Well they are hurting the recovery of your neighborhood and our great country. Lets talk details.
A Vampire REO is a home that has foreclosed, but the homeowner still lives in the home. They aren’t paying any rent or mortgage payments, and they are not keeping the house up very well, because they are in the process of being evicted. Some lenders move very slowly in the eviction process, trying to buy time for the properties to appreciate. Unfortunately, many of these houses (sometimes in the thousands in each city) drive down the prices in the neighborhood because of deteriorating conditions.
Zombie Foreclosures are when the homeowner moves out of the house after stopping payments to the lender but the foreclosure is not completed for various reasons. And since title is never transferred out of the homeowner’s name, he or she still has the legal obligation to pay for certain debts and expenses such as property taxes, HOA dues, and maintenance on the property. The possibility of a Zombie property provides yet another reason for you to remain in your home for as long as possible during a foreclosure. You will be much more likely to avoid becoming the victim of a Zombie Foreclosure if you stay through the entire process and wait for an official notice to vacate before moving out.
New words for an ever changing mortgage world.
Categories: Finance, Real Estate