Monsters of the Housing Market: Vampire REOs and Zombie Foreclosures

Foreclosure Zombie

In a press release overnight, the foreclosure tracking service RealtyTrac, observed that a stunning 47% of bank-owned homes are still occupied by their previous owners who were foreclosed on, creating “vampire REOs.”


Monsters of the Housing Market: Vampire REOs and Zombie Foreclosures

RealtyTrac has identified two monsters threatening the housing recovery: Vampire REOs and Zombie Foreclosures.

Vampire REOs are bank-owned homes that are still occupied by the previous homeowner who was foreclosed on. On the surface these properties often will look like normal, non-distressed homes, but beneath the surface they represent a shadow inventory that is becoming more imminent as rising home prices motivate banks to sell off these homes to try to recoup their losses on soured loans.

Zombie foreclosures are homes that are still languishing in the foreclosure process but have been vacated by the homeowner being foreclosed. Often these homes are more obviously distressed, falling into disrepair with no one to perform regular maintenance and upkeep. As such, they often represent a threat to the quality of the surrounding neighborhood, dragging down home values. In addition, the homeowner who left the property may not be aware that he or she is still responsible for property taxes and any other expenses that come with home ownership — leaving them in an even tougher financial spot when they discover this reality.

Rest here…


2 Responses to “Monsters of the Housing Market: Vampire REOs and Zombie Foreclosures”
  1. charley rice says:

    The Contract is defective and was cancelled when the only subprime originator/ alleged lender goes/went DEFUNCT.

    Civil Code Section 1700.

    That alleged lender was satisfied before it went clearly out of business.

    What you have now is deceptive practices from 3rd party banks that was already bailed out by the 2008 TARP.

    This is now double dipping on a defective instrument.

    They know that the contract is unenforceable…

    Challenge them and sue them!

    No court can have jurisdiction, standing, venue over a defective cancelled contract by a DEFUNCT lender. Challenge them.

    That party was the real party of interest that is long gone is NOT before the court… No standing.

    Watch out for these scam artist who are trying to get you to contract with them!

    This is a major violation of Unsafe and unfair business practices B&P subsection 17,200.

    Report them ALL!!!!!!

  2. JohnR says:

    Seems like a Corporate Sales pitch to me.

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