Do you intend to get single-family Cedar Park rental properties as an investment? If so, you need to be aware of 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 add some additional hurdles for potential buyers. This blog post will describe a zombie property and the steps involved in purchasing 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 may believe they must move out immediately, even though foreclosure has just started. Or they may abandon the property for other reasons. Since the foreclosure process hasn’t been completed, this zombie property is still owned by the homeowner, not the bank or lender. These properties are often left vacant for long periods, leading to disrepair and causing safety and property value issues for the whole neighborhood. Furthermore, the financial responsibilities of the home continue to pile up for the owner, from property taxes to Home Owners Association assessments and fines – and elsewhere.
How can I buy a zombie property?
Purchasing a zombie property can be complicated, as you can see. While that doesn’t indicate you shouldn’t consider buying zombie properties, you need to be familiar with the risks and take extra steps to protect your investment. The following are some of the actions you need to 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 means researching the property, the neighborhood, and the current market conditions. If you are unfamiliar with the area, your best move 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 necessary if you’re looking at a zombie property. Spend some time employing a qualified inspector who can detect any and all potential problems with the property.
- Have realistic expectations: It’s vital to keep in mind that a zombie property is, by definition, a distressed property. As a result, it will almost certainly need some 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 challenging, so it’s advisable to have an experienced real estate agent, Cedar Park property management company, and attorney on your side. They can help you navigate the process and protect your interests.
If you’re interested in buying a zombie property, don’t forget to do your research and get expert assistance. You can convert a zombie property into a successful investment with some extra care and attention.
At Real Property Management Advisors, we work with rental property investors to find and assess properties for sale. Our local market experts can help you carefully inspect 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.
