Are you planning to get single-family Norwich rental properties as an investment? If yes, you must 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 has not gone through the formal foreclosure process. This can produce some additional hurdles for potential buyers. This blog post will describe a zombie property and explain the process needed to get one.
What is a zombie property?
A zombie foreclosure arises when the homeowner abandons a property before the completion of the foreclosure process. If a property owner defaults on their mortgage, they might think they must move out right away, even though foreclosure hasn’t started yet. Alternatively, they could abandon the property for other reasons. Since the foreclosure process isn’t over, this zombie property is still owned by the homeowner, not the bank or lender. Usually, these properties sit vacant for long periods, leading to disrepair and causing safety and property value problems for the entire neighborhood. Besides, the home’s financial responsibilities keep accumulating 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 see, getting a zombie property can be complicated. While that doesn’t mean you shouldn’t consider acquiring zombie properties, you must know the risks and take extra steps to protect your investment. Here are some things 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 know exactly what you’re getting into. This means researching the property, the neighborhood, and the current market conditions. If you don’t know the area well, the ideal approach is to contact a local property management company with a lot of experience in investment property transactions.
- Get a good home inspector: A professional home inspection is even more essential if you want to purchase a zombie property. Don’t forget to employ a qualified inspector who can detect any potential complications with the property.
- Have realistic expectations: It’s necessary to keep in mind that a zombie property is, by definition, a distressed property. This means that it will probably need both repairs and renovations and may not be up to your usual standards. It is imperative to factor this into your offer price.
- Get expert help: Purchasing a zombie property can be complicated, so it’s advisable to have an experienced real estate agent, Norwich property management company, and attorney on your side. They can help you navigate the process and protect your interests.
If you want to buy a zombie property, you should do your research and talk to an expert. You may turn a zombie property into a gainful investment with some extra care and attention.
At Real Property Management Beacon, we work with rental property investors to find and assess properties for sale. Our local market experts can help you get a full picture of the market, set accurate rental rates, and optimize your investment. Contact us online to learn more.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.