Zombie Foreclosures & Curse of Zombie Titles
CNNMoney: “Zombie foreclosures: Borrowers hit with debts that won’t die” by Les Christie:
there are close to one million properties that are in some sort of foreclosure limbo. While no one knows the exact number, it’s estimated that tens of thousands of those properties could be zombie foreclosures.
This has also been called “zombie title“, a problem ZombieLaw has discussed previously – see most recently “Zombie Valuations and Titles” but also Michelle Conlin’s zombie title Reuters piece linked in post on Magical Realism in Business.
And today in Lawyers.com: “Foreclosed Homeowners, Beware the Curse of the Zombie Title” by Josh Crank:
Never turn your back on a home foreclosure with the assumption your property title is dead. It could reanimate as a zombie title, dragging hordes of bills and fines along with it.
In most foreclosures, the homeowner retains the property title throughout the process until the home is sold and the title is officially transferred to a new owner. In the meantime, the homeowner is still responsible for property taxes and maintenance, regardless of whether he’s living in the home. If he turns his back on the property too soon, he’s flirting with the zombie title’s curse.
homeowners with zombie titles can even be placed on criminal probation for failure to maintain their property and could face jail time if they don’t meet repair deadlines.
Recall also the New Jersey law firm press release warning of zombie titles