What is a zombie property?
A zombie foreclosure happens when the homeowner abandons a property before the foreclosure process is finished. If a property owner defaults on their mortgage, they may believe they must move out immediately, even though foreclosure has just started. Or they may abandon the property for other reasons. Since the foreclosure process hasn’t been done, this zombie property is still owned by the homeowner, not the bank or lender. Commonly, these properties are left vacant for long periods, which causes disrepair and causing safety and property value issues for the whole neighborhood. Also, the home’s financial responsibilities keep coming for the owner, from property taxes to Home Owners Association assessments and fines – and more.
How can I buy a zombie property?
As you can expect, owning a zombie property can be complicated. While this does not deny the possibility of purchasing zombie properties, you should be aware of the risks and take extra steps to protect your investment. The following are a couple of things you need to do if you’re interested in buying a zombie property:
- Do your research: You need to fully understand what you’re getting into before you make an offer on a zombie property. This signifies researching the property, the neighborhood, and the current market conditions. If you are clueless about the area, your best move is to contact a local property management company with a deep understanding of investment property transactions.
- Get a good home inspector: A professional home inspection is even more critical if you’re interested in a zombie property. Consider hiring a qualified inspector who can detect any and all potential problems with the property.
- Have realistic expectations: Keeping in mind that a zombie property is, by definition, a distressed property is an important consideration. Therefore, you should expect that it will need repairs and renovations and may not meet your usual standards. You have to factor this into your offer price.
- Get expert help: Acquiring a zombie property can be stressful, so it’s best to have an experienced real estate agent, Ivins property management company, and an attorney on your side. They can help you navigate the process and protect your interests.
Remember to do your research and seek the advice of an expert before purchasing a zombie property. You can convert a zombie property into a successful investment with some extra care and attention.
At Real Property Management Southern Utah, 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.