Wiping Out Housing’s ‘Zombies’: Banks Sell Off Foreclosed Remnants of Crash
Halloween isn’t here just yet, but the zombies are already multiplying by the thousand — zombie foreclosures.
After having left the worst remnants of the housing crash in foreclosure limbo-land, banks are now taking those vacant, foreclosed homes and selling them at a fast clip. They are the so-called zombie foreclosures.
The result is that the numbers have shifted. Vacant homes in the foreclosure process are expected to drop 9 percent in the third quarter from a year ago, but vacant bank-owned properties are expected to jump 67 percent during the period, according to ATTOM Data Solutions. There are now just over 46,600 vacant bank-owned properties (known as REOs) littering neighborhoods nationally.
“We believe it’s a combination of market conditions that are ideal for selling properties, along with political pressure for banks to deal with these properties and not allow them to linger in foreclosure indefinitely,” said Daren Blomquist, senior vice president at ATTOM (formerly RealtyTrac).