1 in 4 Foreclosures Are ‘Zombies’
Las Vegas listed as one of the areas in the 1st quarter of this year 2015, having the highest “Zombie” Properties!
Even in the aftermath of the foreclosure crisis, the housing industry is still haunted by “zombie” properties lingering in the foreclosure pipeline. These so-called “zombie” properties are labeled as such when they’ve fallen into foreclosure and have been vacated by the home owner but have not yet repossessed by the foreclosing lender.
Vacant Homes Updates
Twenty-five percent of all active foreclosures were considered “zombie” properties in the first quarter of this year, up from 21 percent a year ago, according to RealtyTrac’s First Quarter 2015 Zombie Foreclosure Report.
The metros with the highest share of “zombie” properties – as percentage of all foreclosures – are St. Louis, Portland, and Las Vegas. By state comparison, however, Florida had the highest number of zombie foreclosures, with 26 percent of all of its foreclosures considered “zombies”, followed by New Jersey (23% of its properties in foreclosure) and New York (19%).
Zombie foreclosures “represent an increasing share of all foreclosures because they tend to be the problem cases still stuck in the pipeline,” says Daren Blomquist, vice president at RealtyTrac. “Additionally, the states where overall foreclosure activity has been increasing over the past year – counter to the national trend – tend to be states with a longer foreclosure process more susceptible to the zombie problem.”
In such states, the increase in zombie foreclosures “is actually a good sign that banks and courts are finally moving forward with a resolution on these properties that may have been sitting in foreclosure limbo for years,” Blomquist says. “In many markets there is plenty of demand from buyers and investors to snatch up these distressed properties as soon as they become available to purchase.”
The following metros had the most zombie foreclosures in the first quarter, according to RealtyTrac’s report:
- New York: 19,177 zombie foreclosures
- Miami: 9,580
- Chicago: 8,384
- Tampa, Fla.: 7,838
- Philadelphia:7,554
- Orlando, Fla.: 3,718
- Jacksonville, Fla.: 2,368
- Los Angeles: 2,074
- Las Vegas: 1,832
- Baltimore, Md.: 1,722
Source: “One in Four U.S. Foreclosures Are ‘Zombies’ Vacated by Homeowner, Not Yet Repossessed by Foreclosing Lender,” RealtyTrac (Feb. 5, 2015)
