Zombies Attack Foreclosures in South Florida



Do you know about Zombie foreclosure attacks?

 Zombie titles occur after a homeowner defaults, but when a lender never follows through with the foreclosure. Although a mortgage loan servicer may notify a borrower in default that foreclosure proceedings have begun, the lender is under no obligation to continue with the process. When homeowners are given a foreclosure notice, many leave their properties because they believe they will be evicted. During this time, however, the borrower in default is still liable for the property, even though he or she no longer lives there and is not aware of the fact that he or she still owns it. Homeowners are legally liable for their home which means they are responsible for property maintenance costs, utilities, and taxes — all for properties they don’t realize they still legally own.

Tanya Marchiol, CEO of Team Investments, a real estate firm, said foreclosed homeowners cannot leave their house in shambles and expect the bank to pick up the pieces.“It is your responsibility to know what is going on with your house,” she said. “The bank can cancel the foreclosure and never tell the homeowner.”Borrowers must remember that their property is their responsibility until the title has changed hands into the banks.

The wave after the foreclosure crisis is still reverberating. According to a March 26, 2013 report by RealtyTrac, nearly 1.5 million U.S. properties are actively in the foreclosure process or bank-owned (REO) during Q1 2013. This rate peaked at 2.2 million in December 2010. Although they are frequent, zombie titles are preventable. One way is to avoid foreclosure entirely. Marchiol said distressed homeowners should short-sale their home instead of allowing the bank to foreclose on it. In the case of a short-sale, banks enlist real estate agents who oversee the home and ensure that it is maintained. In a foreclosure, there is no outside protection.