Unveiling Zombie Properties: Considerations Before Making a Purchase

Do you want to invest in single-family rental properties? If this is the case, here are some things you should know about 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 extra encounters because of this. In this blog post, we will define a zombie property and deliberate the actions mandatory to purchase one.

What is a zombie foreclosure?

A zombie foreclosure ensues 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 because of many different things. 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, for the sake of your property, you should know concerning the risks and take additional measures. Here are a few things you need to do if you want to buy a zombie property:

1. 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.
2. 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.
3. 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.
4. Get expert help: Buying a zombie property can be complicated, 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.

At Real Property Management Allegiance, we assist individuals who want to buy rental homes find and evaluate places to buy. Our experts on the local market can help you do a full analysis of the market, set fair rental rates, and get the most out of your investment. Contact the Real Property Management office near you to find out more.