What is a zombie foreclosure and will that be a good thing for investors?

What is a zombie foreclosure and will that be a good thing for investors?

We are seeing an increase in Zombie Preforeclosures and Foreclosures.


What is a zombie house or zombie foreclosure? That’s where the house is in default, preforeclosure or foreclosure and has been abandoned, meaning it’s vacant. Vacant means no life inside, no lights on, no energy and the occupants are usually missing in action.


You can find out about these homes by driving by and seeing long grass or mail piled up or dark windows at night several nights in a row, by the USPS vacant house status list, by talking to neighbors who are in the know (i.e. “knowsy” ) neighbors or nebbies, by subscribing to a list, looking at the county records of newly filed NODs and driving by, the probate lists, etc.


Some of these of course will not go into to foreclosure since the owner has plenty of equity but sometimes the cost of repairs is too much, sometimes the family inherited and are in disagreement of what to do, or there simply is no cash to catch up the delinquency and so this is your opportunity.


The number of Zombie foreclosures is going up across the country, so I am excited for the deals we will find next year. It’s funny that some pundits are “shocked” at the 150% increase in foreclosure filings year over year. Really? Do we not remember that foreclosures were under a moratorium most of 2020 and 2021? With courts starting to operate closer to full capacity, they are just catching up with the prepandemic foreclosure log AND the creation of new filings,  there will be a bump in that graph like a camel’s back.


we are playing catch up and yes people have equity to save their credit from a true foreclosure but some will panic sell, some will want to sell off market to save commissions and the zombie’s already gave up so if you are looking for deals look up vacant homes.

This is your opportunity to invest at lower prices in years!

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