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.”

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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…

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4closureFraud.org