With the economic downturn, anyone dealing in real estate quickly became familiar with previously little-known terms such as foreclosure and short sale. Now that the housing market is picking back up and people are moving on, a new term is coming to light — zombie titles.
The Zombie Title
This is when a home has been vacated because the owners defaulted on their loan and their bank started the foreclosure process. However, for some reason or another the bank never completed the foreclosure and sold the home.
So, when the city starts fining someone for the overgrown grass and dilapidated structure, the homeowner who thought they were finished with the property gets the bill.
The “Old” Meter is Still Running
Homeowners think they don’t own the property any longer and therefore try to move on by rebuilding their credit score and finding a new place to live. It can be a rude awakening to find out that not only do they still own a home they could have been living in, but also its long vacancy has caused it to fall into disrepair.
The Effect on The Neighborhood
These vacant homes can decrease the value of a neighborhood. If the bank or the un-suspecting homeowner are neither one taking care of the property, then it can become overgrown and an eyesore on the block. It becomes a problem with no solution because the owner won’t want to invest any money in fixing up the property when the bank could come back with the foreclosure at any time.
Homeowners who have foreclosed on a home should double check that their bank actually followed through to closing on a sale. They could contact their lender or check public property records just to make sure. Otherwise, they could be haunted by their housing nightmare all over again.
Don’t let the zombie title of a past property haunt your future! Check with your bank to make sure you’re free and clear of your foreclosure.
There are many other delicate factors of consideration when looking to buy or sell distressed properties. Homes that have been involved in a foreclosure, pre-foreclosure, lis-pendis, short-sale or sometimes even exploring some of these routes may have an impact on the home in question.
Approved Funding can help guide you through the process of these or similar unique situations. Our knowledgeable mortgage consultants (with almost 15 years experience on average) can help walk you through any process as a buyer or a seller that can help maximize your return as a homeowner.
Don’t be swayed by other companies that dangle low rates or discounted fees to lure you in. More often than not, the devil is always in the detail, and it becomes too late to turn back and start right elsewhere.