Keeping an Eye Out for Zombies in Salt Lake City and Beyond
If
you’ve come across the term "zombie foreclosures" in recent months,
it wasn’t referring to voodoo parlors whose priests couldn’t pay the mortgage.
Not
exactly dead, but not exactly alive, they are properties stuck in a kind of
zombie-like limbo. They are homes that have been abandoned by their former
owners at some point before foreclosure. Now they are sitting there, accumulating
ongoing taxes, liens, and gradual deterioration while the bank decides what to
do (or not do) about them.
According
to RealtyTrac, there are probably 302,000 "zombies” nationwide, so the odds are, some
are going to be here.
Whenever
you search for bank owned properties in Utah or your own home state,
keep an eye out for the zombies. Because the legal owner has moved on, he or
she is likely to be highly motivated to sell via a short sale. But…while bank owned properties — those that have
completed the foreclosure process — have any outstanding taxes clearly listed
on court records, a zombie property may be harder to investigate. That’s one
reason why knowing you are dealing with a zombie is important.
Before
writing an offer for zombies or bank owned properties, inspecting is vital. If
a home spent time as a zombie before being listed in foreclosure, damage could
have resulted from neglect, or even vandalism (nowadays, copper piping is a
frequent target). Lack of central heating during cold and wet periods can lead
to mold — and zombies seldom pay utility bills.
Some
areas are more affected by foreclosures than others, and a concentration of
zombie properties creates its own problems. An empty neighborhood is more
likely to attract squatters or looters; neither of which help property values.
But in some areas, that’s a temporary situation. Realistically gauging a
neighborhood’s impact on long-term value is a key part of the common sense
approach that makes for good investing.
Zombie
foreclosures aren't
exactly alive, not quite dead, and not really foreclosures, either (at least
not yet). I’m happy to report that even as the market heats up, you can still
identify bank owned properties in Salt Lake City and beyond that are worth investigating. Call me today!
No comments:
Post a Comment