ZOMBIE FORECLOSURES:
THE VACANT DEAD
Average time zombie homes have been lingering in foreclosure: 1,031 days
One in every five homes in the foreclosure process is sitting vacant, abandoned by the
distressed homeowner and not yet repossessed by the foreclosing lender. With no one to
maintain them, these zombie foreclosures are falling into disrepair, attracting vandalism and
other crime and dragging down the values of nearby homes in the neighborhood.
POSSIBLE SOLUTIONS
The Cure Solution
Some zombie foreclosures can be
cured if a new homeowner is interested
in buying the property, often via short
sale, and rehabbing. The vacant, dead
foreclosure is re-animated with a new
homeowner or tenant who mows the
lawn, fixes the broken windows, etc.
and thereby improves the value of the
property and the surrounding
neighborhood. Buyers, real estate
investors and agents can be part of this
solution by working with the distressed
homeowners and banks to acquire
and then responsibly rehab these
zombie foreclosures.
The Kill Solution
Unfortunately the best solution for some
zombies is a kill shot in the form of full
demolition. A recent study* sponsored
by Harvard University of zombie
foreclosures in Cleveland concluded
that "gut rehab" done for decades by
community development organizations
is "not financially viable for most
Cleveland neighborhoods," and instead
"demolition will likely remain the
predominant means of blight removal
and market stabilization. "
Top 10 Markets for
Zombie Foreclosures
Metropolitan Statistical Area
Miami-Fort Lauderdale-Pompano Beach, FL
Chicago-Naperville-Joliet, IL-IN-WI
New York-Northern New Jersey-Long Island, NY-NJ-PA
Tampa-St. Petersburg-Clearwater, FL
Orlando-Kissimmee, FL
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
Jacksonville, FL
Las Vegas-Paradise, NV
Palm Bay-Melbourne-Titusville, FL
Cleveland-Elyria-Mentor, OH
Total Vacant
Foreclosures
14,611
12,919
1 1 ,095
10,446
5,560
4,940
4,403
2,955
2,213
2,078
Pct of Total
Foreclosures
17%
19%
12%
28%
21%
19%
19%
http://www.jchs.harvard.edu/research/publications/role-investors-one-three-family-reo-market-case-cleveland
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