Skip to content

States with a lot of zombie mortgage debt

September 13, 2013

ZombieLaw has posted a bunch about zombie foreclosures lately – (See “Florida Zombie Foreclosures” and “Zombie Foreclosures are Bank Fraud“)

Today at 247WallSt: “States With The Most Zombie Homes” by Michael B. Sauter and Thomas C. Frohlich:

There are more than 770,000 homes in foreclosure in the U.S. According to the latest data provided by RealtyTrac, roughly one in five of these, over 150,000 in all, has been abandoned by its owners, but remains unclaimed. These properties are referred to by the industry as “zombie” homes.

That’s only one of the at least three types of zombie debt – but ok, continuing:

In some states, the problem of zombie homes is particularly severe. … 24/7 Wall St. identified those states with more than 10,000 homes in foreclosure, and at least a one-in-five foreclosure vacancy rate. These are the seven states with the most zombie homes.

The list includes:

7) South Carolina
6) Arizona
5) Maryland
4) Florida
3) Georgia
2) Nevada
1) Indiana

and

All of the states with the most zombie homes had unemployment rates higher than the national rate in July.

and these foreclosure can take a long time:

The average U.S. foreclosure ending in the second quarter of this year took 526 days to process. In some of the states with the most zombie homes, the average processing period was much higher. In Florida, the average foreclosure took 907 days to complete.

And that’s assuming they don’t get dismissed and then restart or stuck in limbo (remember, some of this is robo-signed paper and can’t foreclose). And then even if the foreclosure goes through, the bank might refuse to take possession of the title (no one wants to pay the maintenance fees on underwater property in communities that never fully built what the developer’s prospectus promised).

Advertisements

From → debts, Uncategorized

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: