Are you interested in single-family Shelby Township rental properties as an investment? Provided that this is true, you need 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 gone through the formal foreclosure process. This can create some extra hurdles for potential buyers. This blog post will describe a zombie property and indicate the steps you need to take to buy one.
What is a zombie property?
A zombie foreclosure transpires when the homeowner abandons a property before the foreclosure process is finished. If a property owner defaults on their mortgage, they may think they need to move out asap, even though foreclosure has just begun. Or they may abandon the property for other reasons. Since the foreclosure process is currently underway, this zombie property is still owned by the homeowner, not the bank or lender. These properties usually wind up vacant for long periods, falling into disrepair and causing safety and property value issues for the entire neighborhood. Furthermore, the financial responsibilities of the home keep rising for the owner, from property taxes to Home Owners Association assessments and fines – and beyond.
How can I buy a zombie property?
As you can expect, purchasing a zombie property can be complicated. While this does not eliminate the possibility of purchasing zombie properties, you must be informed about the risks and take extra steps to protect your investment. Here are a few things you should do if you’re interested in buying a zombie property:
- Do your research: You need to understand what you’re getting into before you make an offer on a zombie property. This entails researching the property, the neighborhood, and the current market conditions. If you are not familiar with the area, the safest choice is to contact a local property management company with in-depth knowledge of investment property transactions.
- Get a good home inspector: A professional home inspection is even more essential when thinking about a zombie property. It is important to find a qualified inspector who can detect any and all potential issues with the property.
- Have realistic expectations: It’s vital to know that a zombie property is, by definition, a distressed property. This indicates that it will likely need both repairs and renovations and may not reach your usual standards. Be sure to factor this into your offer price.
- Get expert help: Buying a zombie property can be complicated, so it’s critical to have an experienced real estate agent, Shelby Township property management company, and an attorney on your side. They can help you navigate the process and protect your interests.
If you’re going to purchase a zombie property, it is advisable to do your research and seek expert assistance. You can switch a zombie property into a booming investment with some extra care and attention.
At Real Property Management Silverstone, we work with rental property investors to find and assess properties for sale. Our local market experts can help you thoroughly evaluate the market, set accurate rental rates, and optimize your investment. Contact us online to learn more.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.