Don’t worry – a zombie property has nothing to do with animated corpses. Instead, a zombie property is a home that is in limbo because the homeowner did not know they retained ownership and the property began to further deteriorate. In many cases this can be a gold mine for real estate investors, and also a great way for home buyers to get a good deal on a fixer-upper. But first, lets look at how a good home turns into a zombie property.
A zombie property happens when a bank or a lender starts the foreclosure process on a borrowers home, but never goes through with a full foreclosure. While this is happening, the homeowner makes an assumption that they have lost their home so they leave the property unaware it is still in their name. Many times the home will sit vacant, and because it was likely already in disrepair, it further degrades and becomes what we know as a “zombie property”.
Let’s “dig up” the advantages to buying zombie properties and why zombie properties sometimes can just be the walking dead.