Zombie foreclosures are a tempting way to find homes to rehab and can help your Arizona Fix and Flip Loans go father. However, you’ll find there are a few extra hoops to jump through when you’re working with the undead.
Home values are skyrocketing and rents are up as well. It seems there isn’t a whole lot of room for someone doing rehabs with Arizona Fix and Flip Loans to get a foot in the door anymore. If you’re struggling to find good prospects, you may have come across something referred to as “zombie foreclosures” and wondered what they are and why more people aren’t leveraging the strategy.
Zombie foreclosures are a bit of a novelty in the industry. If you’re familiar with the foreclosure process, then you know that when someone misses a payment, and often even several, they still have avenues to follow. The bank will usually make several attempts to collect and then eventually send out the first foreclosure notice. Even when that first letter goes out, it still gives people a certain number of days to get their payments and any fees caught up. Then, there’s a court process and other events that occur. The whole thing usually takes three months or so and, during that timeframe, the individual is still the legal owner.
The problem is, sometimes people get spooked when the process starts, and they think they need to vacate right away. Other times, they just want to get out of the house and start rebuilding their life. There are times when the bank kickstarts the process and then backs out after a homeowner leaves too. Although this is typically seen more in low-income areas, where the bank doesn’t think the property will sell or doesn’t want to take ownership of it, even basic human errors can stop the process. In any of these cases, there’s now a property owned by the homeowner who has since vacated due to an impending foreclosure. This is a zombie foreclosure.
Bad things happen when properties are vacant. They begin to deteriorate without proper care and become targets for vandals and vagrants. Meanwhile, the homeowner is still on the hook for everything happening to his property. Whether there’s a water leak, HOA fees accruing, fines being issued for an unkempt yard, or taxes racking up, these things all fall on the shoulders of the homeowner, whether he’s there or not. Naturally, these conditions are an eyesore for neighborhoods, resulting in reduced home values, but they can also pose risks for safety and security too. It’s in everyone’s best interests to get that zombie foreclosure sold and, yes, you can use Arizona Fix and Flip Loans to purchase them.
Some zombie foreclosures never make it through the process due to title issues and other times, there are liens against the property. That means the title search, and often correcting issues, can become a lengthy and/or expensive legal process. Untangling the mess that comes through months and years of non-payment and neglect can be a serious challenge, even more so than your typical foreclosure. So while you can purchase a zombie foreclosure with Arizona Fix and Flip Loans, it’s probably not something you want to go alone on the first time.
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About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.