One in five homes in the foreclosure process are zombies, according to RealtyTrac which says that Florida leads the list with roughly 55,000 homes that are abandoned by their owners and in a state of legal limbo. Despite economic recovery in much of the nation, the foreclosure issue is not going away any time soon. What do zombies mean if you are looking to list your property? Most likely if there is one on your street, you will not be able to sell your home. If you do, you’ll get much less than you were hoping for due to the proximity of the zombie foreclosure. Zombie foreclosures not only lower property values of surrounding homes, but they also lead to lost property tax revenue – a double whammy for anyone considering listing a real estate property.
RealtyTrac’s most recent data on zombie foreclosures also reported that about 21 percent of the 141,406 total foreclosures reported in Q2 were of the zombie variety. What makes a foreclosure a zombie? This type of foreclosure occurs when a lender goes through all the steps of a foreclosure, but fails to complete the last step of registering the deed to move title from the borrower to the lender. The owner then deserts the property leaving it abandoned which leads to an unkempt eyesore, making the surrounding properties less appealing.
One of the reasons that Florida is on the top of this list is because it is a judicial foreclosure state. That means that in order to foreclose on a property a bank must go through the court process which takes a long time. While new laws set out to protect borrowers and prevent servicers from reacting to foreclosures at the same rate they typically would, there are other ways service providers can provide assistance to borrowers while working directly with their business partners to prevent such a high vacancy rate.
Working with a qualified lawyer is the first step you should take if you are facing a foreclosure or currently involved in one. A well informed homeowner can be counseled by a foreclosure attorney who can provide guidance in terms of what options are available to you and communicate with involved parties to find the best resolution and reduce the time period of the foreclosure sale right of redemption. In some cases, this time period can be shortened from six months to as little as 30 days.
Servicers may also work directly with a lawyer who will contact the borrower. For example, when a company has made an attempt to serve the borrower papers and finds the property to be vacant, they are often times legally required to search for the borrower. This process will not eliminate zombie foreclosures, but does help expedite the foreclosure or proceed to workout. By enlisting the help of an attorney from the start, you can be proactive and address the issue before vacancies increase and prevent zombie foreclosures from spreading.
If you find you are the victim of a zombie foreclosure, there may be a number of remedies available to you. Contact the Tampa foreclosure attorneys at McIntyre Thanasides Bringgold Elliott Grimaldi & Guito, P.A. today.