Do you want to get single-family Filer rental properties as an investment? If yes, you have to understand the “zombie property” (also called a “zombie foreclosure”) phenomenon. A zombie property is a property that has been abandoned by the owner but has not yet gone through the formal foreclosure process. This may create some extra hurdles for potential buyers. This blog post will describe a zombie property and go over the procedures involved in buying one.
What is a zombie property?
A zombie foreclosure arises when the homeowner abandons a property before the foreclosure process is done. If a property owner defaults on their mortgage, they might think that they need to move out asap, even though foreclosure has just started. Or they may abandon the property for other reasons. Since the foreclosure process has not yet been finished, this zombie property is still owned by the homeowner, not the bank or lender. These properties typically end up vacant for long periods, falling into disrepair and causing safety and property value issues for the entire neighborhood. Additionally, the financial responsibilities of the home keep piling up for the owner, from property taxes to Home Owners Association assessments and fines – and beyond.
How can I buy a zombie property?
That being the case, obtaining a zombie property can be complicated. While that doesn’t mean you shouldn’t consider purchasing zombie properties, you must be familiar with the risks and take extra steps to protect your investment. Here are some things you can do if you’re interested in buying a zombie property:
- Do your research: You must be familiar with what you’re getting into before making an offer on a zombie property. This means researching the property, the neighborhood, and the current market conditions. If you are completely new to the area, the best approach is to contact a local property management company with full knowledge about investment property transactions.
- Get a good home inspector: A professional home inspection is even more vital if you want to get a zombie property. It is important to work with a qualified inspector who can distinguish any and all potential conflicts with the property.
- Have realistic expectations: It’s essential to remember that a zombie property is, by definition, a distressed property. This implies that it will likely need both repairs and renovations and may not meet your usual standards. Be sure to factor this into your offer price.
- Get expert help: Acquiring a zombie property can be complicated, so it is best to have an experienced real estate agent, Filer property management company, and attorney on your side. They can guide you navigate the process and protect your interests.
Don’t forget to do your research and get expert assistance if you’re considering buying a zombie property. You can switch a zombie property into a profitable investment with some extra care and attention.
At Real Property Management Magic Valley, we work with rental property investors to find and assess properties for sale. Our local market experts can help you thoroughly examine the market, set accurate rental rates, and optimize your investment. Contact us online to learn more.
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