Are you considering single-family Warwick rental properties as an investment? If that is the case, you should 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 yet gone through the formal foreclosure process. This can bring a few extra hurdles for potential buyers. This blog post will describe a zombie property and outline the means you need to take to get one.
What is a zombie property?
A zombie foreclosure happens when the homeowner abandons a property before the foreclosure process is finished. If a property owner defaults on their mortgage, they might think they need to move out right away, even though foreclosure has recently started. Or they may abandon the property for other reasons. Since the foreclosure process isn’t done, this zombie property is still owned by the homeowner, not the bank or lender. These properties are often left vacant for long periods, causing them to fall into disrepair and causing safety and property value issues for the entire neighborhood. Besides, the financial responsibilities of the home keep on stacking up 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 see, obtaining a zombie property can be complicated. While this does not mean that you should never look at getting zombie properties, you need to be aware of the risks and take extra steps to protect your investment. Here are some steps you need to do if you’re interested in buying a zombie property:
- Do your research: You need to clearly understand what you’re getting into before making an offer on a zombie property. This includes researching the property, the neighborhood, and the current market conditions. If you are new to the location, the ideal approach is to contact a local property management company with comprehensive experience in investment property transactions.
- Get a good home inspector: A professional home inspection is even more important if you want to get a zombie property. Ensure that you choose a qualified inspector capable of locating any and all potential issues that may happen with the property.
- Have realistic expectations: It’s worth noting that a zombie property is, by definition, a distressed property. This means that it will likely need both repairs and renovations and may not be up to your usual standards. Be sure to factor this into your offer price.
- Get expert help: Since the process of getting a zombie property can be challenging, it is essential to have an experienced real estate agent, Warwick property management company, and attorney in your favor. They can help you navigate the process and protect your interests.
Don’t forget to do your research and seek the assistance of professionals if you are thinking about buying a zombie property. You can transform a zombie property into a profitable investment with some extra care and attention.
At Real Property Management Providence, 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.
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.
