How to Prevent Your Home from Becoming a “Zombie House”

Zombies seem to be the new vampires as they have become increasingly popular on TV, movies and other entertainment formats. What some distressed homeowners may not realize is that they could be subjected to the nightmare of having a "zombie house" on their hands. This new term is used to describe homes that are in the not quite "living" and not quite "dead" status of a home that has not completed the foreclosure process. A homeowner may receive a notice that the bank is foreclosing on their home due to unpaid mortgage payments but the lender may not promptly complete the foreclosure. Meanwhile, the homeowner may have moved out of the home thinking that it now belongs to the bank. Until the foreclosure is finalized, however, the home is still the owner's responsibility. If the homeowner is not aware that the foreclosure processes has not been completed then they can be held responsible for housing taxes and possible damages incurred after "abandoning" the home. According to RealtyTrac, there are about 300,000 properties in the U.S. that could be described as zombie houses. They lie uninhabited but not able to be put up for sale. The homeowner is still legally responsible for the house until they are notified by the mortgage lender that the foreclosure has been completed. Do you need help with a foreclosure? A bankruptcy lawyer skilled in foreclosure matters may be able to help.

Why can foreclosure result in a zombie house?

It is vital that a homeowner follow up with their lender once they have been given a foreclosure notice. Until that process is 100 percent completed and the bank has officially taken possession then you are liable for property taxes and other possible costs. The bank is not required to tell you that the process is incomplete. Why would a bank delay the foreclosure process? A lender may find that it is in their best interest to drag out a foreclosure because they do not want to be responsible for taxes and any repairs that would have to be made in order for the home to be up to code for resale—especially if the home is not likely to sell quickly or for very much even if it was promptly put on the market. New laws require banks and other mortgage lenders to promptly conduct a foreclosure but it is still wise for a buyer to follow up on the action to ensure they are relieved of legal liability.

Contact a compassionate and highly competent bankruptcy attorney at the Maida Law Firm today if you need help with foreclosure defense or other related mortgage matters. There are ways to prevent or stop a foreclosure as well as other alternatives depending on what you would like to achieve in regard to your home loan.