There were a significantly lower number of vacant property foreclosures in the third quarter, according to data released by RealtyTrac. The firm’s Zombie Foreclosure and Vacant Property Reports showed there were about 20,500 “zombie” foreclosures nationwide at the end of the third quarter, down 27 percent compared with the second quarter and down 43 percent from the third quarter in 2014.
Zombie foreclosures happen when a borrower in foreclosure vacates his/her home before the foreclosure process is completed. And although some delinquent borrowers walk away intentionally, many are unaware that they still officially own the home, resulting in months or years to complete the foreclosure process.
Zombie foreclosures, though, are becoming rare today, accounting for only 1.3 percent of all vacant residential properties in the third quarter.
Zombie foreclosures usually occur at properties that are underwater. Of the 1.5 million vacant properties accounted for at the end of the third quarter, 6.2 percent were seriously underwater. This means the combined value of loans secured by the property is at least 25 percent more than the estimated market value of the property. Of those same 1.5 million vacant properties, 36.5 percent had at least one open loan, according to RealtyTrac.
“The overall inventory of homes in the foreclosure process has dropped 36 percent over the past year, so it’s not surprising to see a similar dramatic drop in vacant zombie foreclosures,” RealtyTrac Vice President Daren Blomquist said in the press release. “What is surprising is there are so many vacant homes where homeowners do not appear to be in financial distress-with only three percent in foreclosure or bank owned, and only six percent that are underwater.”There were a significantly lower number of vacant property foreclosures in the third quarter, according to data released by RealtyTrac. The firm’s Zombie Foreclosure and Vacant Property Reports showed there were about 20,500 “zombie” foreclosures nationwide at the end of the third quarter, down 27 percent compared with the second quarter and down 43 percent from the third quarter in 2014.
Zombie foreclosures happen when a borrower in foreclosure vacates his/her home before the foreclosure process is completed. And although some delinquent borrowers walk away intentionally, many are unaware that they still officially own the home, resulting in months or years to complete the foreclosure process.
Zombie foreclosures, though, are becoming rare today, accounting for only 1.3 percent of all vacant residential properties in the third quarter.
Zombie foreclosures usually occur at properties that are underwater. Of the 1.5 million vacant properties accounted for at the end of the third quarter, 6.2 percent were seriously underwater. This means the combined value of loans secured by the property is at least 25 percent more than the estimated market value of the property. Of those same 1.5 million vacant properties, 36.5 percent had at least one open loan, according to RealtyTrac.
“The overall inventory of homes in the foreclosure process has dropped 36 percent over the past year, so it’s not surprising to see a similar dramatic drop in vacant zombie foreclosures,” RealtyTrac Vice President Daren Blomquist said in the press release. “What is surprising is there are so many vacant homes where homeowners do not appear to be in financial distress-with only three percent in foreclosure or bank owned, and only six percent that are underwater.”