Are you considering single-family Henrico County rental properties as an investment? If yes, you have to be familiar with 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 gone through the formal foreclosure process. This can create some extra hurdles for potential buyers. This blog post will describe a zombie property and discuss the actions that must be taken to purchase one.
What is a zombie property?
A zombie foreclosure takes place when the homeowner abandons a property before the foreclosure process has been fulfilled. If a property owner defaults on their mortgage, they may feel pressured to move out quickly, even though foreclosure has just begun. Or they may abandon the property for other reasons. Since the foreclosure process is not over, this zombie property is still owned by the homeowner, not the bank or lender. These properties often end up vacant for long periods, falling into disrepair and causing safety and property value issues for the whole neighborhood. In addition, the financial responsibilities of the home continue to pile 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, acquiring a zombie property can be complicated. While this does not imply that you should never consider acquiring zombie properties, you must be familiar with the risks and take extra steps to protect your investment. Here are a few actions you should do if you’re interested in buying a zombie property:
- Do your research: You need to thoroughly understand what you’re getting into before making an offer on a zombie property. This signifies researching the property, the neighborhood, and the current market conditions. If you are not acquainted with the neighborhood, your best move is to contact a local property management company with an in-depth understanding of investment property transactions.
- Get a good home inspector: A professional home inspection is even more vital when thinking about a zombie property. Be sure to engage with a qualified inspector who can pinpoint any and all potential issues that may exist with the property.
- Have realistic expectations: It’s essential to keep in mind that a zombie property is, by definition, a distressed property. This implies that it will likely need both repairs and renovations and may not be up to your usual standards. Don’t forget to factor this into your offer price.
- Get expert help: Purchasing a zombie property can be tricky, so it’s advisable to have an experienced real estate agent, a Henrico County property management company, and an attorney on your side. They can help you navigate the process and protect your interests.
If you’re thinking about purchasing a zombie property, don’t forget to do your research and get professional help. You can convert a zombie property into a profitable investment with some extra care and attention.
At Real Property Management Richmond Metro, we work with rental property investors to find and assess properties for sale. Our local market experts can help you thoroughly evaluate 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.
