OfflineForeclosures are declining, in fact they’re approaching levels not seen since before the housing meltdown. Foreclosure filings, including notices of default, scheduled auctions and bank repossessions fell 23% during the first quarter from a year earlier. It’s the lowest level since the second quarter of 2007.
Last month, banks repossessed just under 44,000 homes. This is very close to the pre-housing bust monthly average. As a comparison, in September of 2010, repossessions topped 100,000 per month. A RealtyTrac spokesman is quoted as saying: “We’re getting back to normal and will be there by next year.” Foreclosures have been declining for the last couple of years, with more distressed properties being liquidated through short sales. Both banks and consumers have discovered short sales to be preferable to foreclosure.
Government programs like HAMP and HARP have also had an impact, with millions of homeowners aided in avoiding foreclosure. Overall, foreclosure activity is decreasing everywhere except in areas under severe economic pressure, such as the Rust Belt. Cities like Rockford and Chicago, IL are examples. Many of the people losing homes now are doing so because of a layoff or personal issue.
Previously, foreclosures were more prevalent in newer homes. However, now that’s shifting back toward older, lower value homes more likely to be in poor condition. This leads to the new problem some analysts see as emerging...the Zombie home.
The term Zombie homes is used to describe homes that are bank-owned but not for sale and not maintained. Their failing condition contributes to neighborhood blight and falling values of surrounding properties. Currently there are around 300,000 of these homes. The Zombie home is one that has started the foreclosure process but it’s stalled and abandoned by the owner.
There are five U.S. states with Zombie homes comprising more than 50% of their total foreclosures: Washington, Indiana, Kentucky, Nevada, and Oregon. However, Florida has the largest number of Zombie properties, currently around 90,000.
There could be opportunity for investors in contacting bank owners of these properties and offering to take them off their hands for little or nothing. If they can be refurbished, there could be profit in them.
Is it O.K. to share my buyers' list with someone (a mortgage banker) I am working with? Should I be concerned about confidentiality issues?
anita Page
Ok I am in Oregon How do I capitalize on the Zombies? Is it about getting to know the asset managers at banks and working Joe's system on REOs ? How do you suggest I locate these homes? Also do you think the Zombies are emerging in judicial foreclosure states? Oregon has just converted and it has slow down the FC process significantly.
Anyone know the answer to my questions?
Theresa
Here are my thoughts on Zombie Homes. Only a very small Credit Union or small local bank will deal directly with you. Banks like Wells Fargo, Bank of America, Chase etc. will not sell single Zombie houses to a small investor. They don't need to! They also control about 98% of foreclosed homes in America, so you are kinda stuck.
We have had luck mailing these banks corporate offices "Attention REO dept" and asking them for the future listing agents contact info on a specific property. Contact the listing agent and let him know you want to make an offer when the property gets listed. They are still going to list the property when the time comes. They want to see how much people will offer. Just like any business. These days they are not taking the first low offer that comes along.
I heard Carbondale is boring since you moved!
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Currently, Florida comes in at the top of the list for the number of zombie foreclosures – properties that are empty but have yet to transfer ownership from the homeowner to the lender. Specifically, there are over 90,000 zombie foreclosures currently on the market in Florida. Illinois has the second higher rate of zombie foreclosures with over 31,000 properties that have been abandoned by the homeowner. California comes in at number three with over 28,000 zombie foreclosures.
http://www.bankforeclosuressale.com/wp/article-04024271.html
There are still many homeowners who are hanging by a thread, either in pre-foreclosure, or looking for a new property to purchase or rent, and abandon their current homes because they are not able to refinance under the harp/hamp,programs, and their homes are underwater. Because the interest rates are low, they are still able to make their mortgage payments, but they are not paying anything towards their principal, and they are not maintaining their homes either because the pride of home ownership is non-existent...
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...