Are you keen on single-family Chubbuck rental properties as an investment? If this is the case, you must fully understand 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 cause some additional hurdles for potential buyers. This blog post will describe a zombie property and outline the actions you need to take to get one.
What is a zombie property?
A zombie foreclosure transpires when the homeowner abandons a property before the foreclosure process is complete. If a property owner defaults on their mortgage, they may feel they must move out quickly, even though foreclosure has not yet begun. They may also abandon the property for other reasons. Since the foreclosure process isn’t over, this zombie property is still owned by the homeowner, not the bank or lender. Mostly, these properties stay vacant for long periods, resulting in disrepair and causing safety and property value issues for the entire neighborhood. Plus, the financial responsibilities of the home keep piling up for the owner, from property taxes to Home Owners Association assessments and fines – and beyond.
How can I buy a zombie property?
To that end, acquiring a zombie property can be complicated. While that doesn’t mean you shouldn’t consider purchasing zombie properties, you should be mindful of the risks and take extra steps to protect your investment. Here are a couple of things you need to do if you’re interested in buying a zombie property:
- Do your research: Be sure you know exactly what you’re getting into before making an offer on a zombie property. This means researching the property, the neighborhood, and the current market conditions. If you are new to the location, the best solution is to contact a local property management company with a specialization in investment property transactions.
- Get a good home inspector: A professional home inspection is even more crucial when looking for a zombie property. Be sure to pick a qualified inspector who can spot any and all potential issues with the property.
- Have realistic expectations: It’s critical to consider the fact that a zombie property is, by definition, a distressed property. This shows that it may not meet your usual standards and will probably demand both repairs and renovations. You need to factor this into your offer price.
- Get expert help: Getting a zombie property might not be easy, so it is ideal to have an experienced real estate agent, a Chubbuck property management company, and an attorney on your team. They can help you navigate the process and protect your interests.
When considering purchasing a zombie property, don’t forget to do your research and seek professional assistance. You can transform a zombie property into a gainful investment with some extra care and attention.
At Real Property Management Pocatello, we work with rental property investors to find and assess properties for sale. Our local market experts can help you better examine the market, set accurate rental rates, and optimize your investment. Contact us online to learn more.
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