'Zombies' Make Up 21% of Foreclosures

AlfonsoGomezBroker.com - What the heck is a 'Zombie' foreclosure, sounds scary...

A 'Zombie' foreclosure is when a home starts the process of foreclosure and the homeowner vacates the property, assuming the bank will soon owe the home, but the foreclosure process does not finish. The homeowner later finds out that the home still belongs to them and that they are responsible for the maintenance and care of the home.

These homes always end up as eyesores and cities and counties loss out on months, and sometimes years, of property tax revenue. Still, the zombie foreclosure rate has shown some improvement, falling 7 percent compared to the first quarter of this year and dropping 16 percent from year-ago levels.

Where Zombie Foreclosures Are Highest
On a metro level, the seven markets with the highest number of zombie foreclosures, according to RealtyTrac’s second quarter report, are:

1. New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.
2. Miami-Fort Lauderdale-Pompano Beach, Fla.
3. Chicago-Naperville-Joliet, Ill.-Ind.-Wis.
4. Tampa-St. Petersburg-Clearwater, Fla.
5. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.
6. Orlando-Kissimmee, Fla.
7. Jacksonville, Fla.

Meanwhile, California posted the largest drop in zombie foreclosures, down 57 percent in the past year. Other states posting large decreases are Arizona, Nevada, and Washington.

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