What is a zombie property?
A zombie foreclosure occurs when the homeowner abandons a property before the foreclosure process is complete. If a property owner defaults on their mortgage, they may feel it is necessary to move out right away, even though foreclosure has just begun. Or they may abandon the property for other reasons. Since the foreclosure process isn’t finished, this zombie property is still owned by the homeowner, not the bank or lender. These properties often wind up vacant for long periods, falling into disrepair and causing safety and property value issues for the entire neighborhood. In addition, the financial responsibilities of the home continue to accumulate for the owner, from property taxes to Home Owners Association assessments and fines – and beyond.
How can I buy a zombie property?
As can be seen, purchasing a zombie property can be complicated. However, that doesn’t mean you shouldn’t consider buying zombie properties; you must be informed about the risks and take extra steps to protect your investment. Here are a few tasks you have to do if you’re interested in buying a zombie property:
- Do your research: You must know exactly what you’re getting into before you make an offer on a zombie property. This suggests researching the property, the neighborhood, and the current market conditions. If you don’t know the location well, the best thing to do is to contact a local property management company that knows a lot about investment property transactions.
- Get a good home inspector: A professional home inspection is even more vital when considering a zombie property. It is a good idea to engage with a qualified inspector who can identify any and all potential problems with the property.
- Have realistic expectations: It’s important to acknowledge that a zombie property is, by definition, a distressed property. This implies that it will likely need both repairs and renovations and may not reach your usual standards. Remember to factor this into your offer price.
- Get expert help: Obtaining a zombie property can be stressful, so it is advisable to have an experienced real estate agent, North Hollywood property management company, and attorney on your side. They can help you navigate the process and protect your interests.
If you want to purchase a zombie property, make sure to do your research and get assistance from a professional. You can transform a zombie property into a thriving investment with some extra care and attention.
At Real Property Management Vision, we work with rental property investors to find and assess properties for sale. Our local market experts can help you thoroughly examine the market, set accurate rental rates, and optimize your investment. Contact us online to learn more.