Are you interested in single-family Farmington rental properties as an investment? If so, you need to know about 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 outline the steps you need to take to buy one.
What is a zombie property?
When the homeowner abandons a property before the foreclosure process is over, this is called a zombie foreclosure. If a property owner defaults on their mortgage, they may think they have to move out quickly, even though foreclosure has just started. Or they may abandon the property for other reasons. Since the foreclosure process isn’t over yet, this zombie property is still owned by the homeowner, not the bank or lender. Most of the time, these properties stay vacant for long periods, falling into disrepair and causing safety and property value issues for the entire neighborhood. Also, the financial responsibilities of the home continue to grow for the owner, from property taxes to Home Owners Association assessments and fines – and more.
How can I buy a zombie property?
As you can imagine, purchasing a zombie property can be complicated. However, you must be aware of the risks and take extra steps to protect your investment if you decide to purchase zombie properties. The following are a few things you should do if you’re interested in buying a zombie property:
- Do your research: You must have a thorough understanding of what you’re getting into before making an offer on a zombie property. This involves researching the property, the neighborhood, and the current market conditions. If you are unaware of the place, the best approach is to contact a local property management company with extensive experience in investment property transactions.
- Get a good home inspector: A professional home inspection is even more crucial when considering a zombie property. Employ a qualified inspector capable of identifying any and all potential issues with the property.
- Have realistic expectations: It’s necessary to bear in mind that a zombie property is, by definition, a distressed property. This indicates that it will likely require both repairs and renovations and may not meet 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 important to have an experienced real estate agent, a Farmington property management company, and an attorney on your side. They can help you navigate the process and protect your interests.
If you’re looking to acquire a zombie property, remember to do your research and get professional support. You can change a zombie property into a thriving investment with some extra care and attention.
At Real Property Management First Choice, we work with rental property investors to find and assess properties for sale. Our local market experts can help you thoroughly assess the market, set accurate rental rates, and optimize your investment. Contact us online to learn more.
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