Suppose you’re thinking about single-family Findlay rental properties as an investment. You need to be aware of the “zombie property” (also called a “zombie foreclosure”) phenomenon. A zombie property is a property that has been abandoned by the owner but hasn’t yet completed the formal foreclosure process. This can cause additional hurdles for potential buyers. This blog post will describe a zombie property and explain the actions that must be taken to buy one.
What is a zombie property?
A zombie foreclosure starts when the homeowner abandons a property before the duration of the foreclosure process has been fulfilled. If a property owner defaults on their mortgage, they may feel obligated to move out immediately, even though foreclosure has only started. Or they may abandon the property for other reasons. Since the foreclosure process isn’t completed, this zombie property is still owned by the homeowner, not the bank or lender. These properties typically end up vacant for long periods, falling into disrepair and causing safety and property value issues for the entire neighborhood. Additionally, the financial responsibilities of the home keep piling up for the owner, from property taxes to Home Owners Association assessments and fines- and beyond.
How can I buy a zombie property?
As you might expect, acquiring a zombie property can be complicated. While that doesn’t mean you shouldn’t consider acquiring zombie properties, you must be conscious of the risks and take extra steps to protect your investment. Here are a couple of actions you need to do if you’re interested in buying a zombie property:
- Do your research: Before making an offer on a zombie property, you need to fully understand what you’re getting into. This means researching the property, the neighborhood, and the current market conditions. If you are not aware of the location, your best course of action is to contact a local property management company with vast expertise in investment property transactions.
- Get a good home inspector: A professional home inspection is even more vital when looking for a zombie property. Make sure to work with a qualified inspector who can spot any and all potential conflicts with the property.
- Have realistic expectations: It’s advisable to remember that a zombie property is, by definition, a distressed property. This implies 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.
- Get expert help: Purchasing a zombie property can be tough, so you should have an experienced real estate agent, Findlay property management company, and an attorney on your team. They can help you navigate the process and protect your interests.
Consider your options carefully before making a zombie property purchase, don’t forget to do your research and seek professional help. You can make a zombie property into a successful investment with some extra care and attention.
At Real Property Management Clarity Team, we work with rental property investors to find and assess properties for sale. Our local market experts can help you thoroughly evaluate the market, set accurate rental rates, and optimize your investment. Contact us online to learn more.
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