Number Of Zombie Properties Increase In 30 US States


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What’s a “Zombie Property”?

Think of it like a haunted house, but with real-world problems. 🧟♂️

  • Definition: A home abandoned by its owner during the foreclosure process (when the bank takes back a property due to unpaid mortgages).
  • Risk: These vacant houses often rot, lowering nearby home values and attracting crime or squatters.

Key Points 📌

  1. Growing Problem: Zombie homes jumped in 30 states + Washington, D.C., this year.
    • Top States: North Carolina (+52.5%), Iowa, Texas, South Carolina, Kansas.
    • Worst Counties: Peoria County (IL), Broome County (NY), Cuyahoga County (OH).
  2. Nationally, It’s (Mostly) Good News:
    • Only 1 in 14,207 homes is a zombie property—still way better than the 2008 housing crisis!
  3. But Foreclosures Are Creeping Up:
    • Foreclosure filings rose 11% last quarter. High home equity is keeping numbers low… for now.

Why Should You Care?

Zombie properties hurt everyone, even if you don’t own one:

  • Lower Property Values: A decaying house nearby can slash your home’s price.
  • Safety Risks: Empty homes attract crime, squatters, and vandalism.
  • Financial Traps for Owners: Abandoned doesn’t mean “free.” Owners still face:
    • Unpaid property taxes (the government can claim your assets).
    • HOA fines (leading to lawsuits).
    • Credit score damage (making it harder to rebuild financially).

States Fight Back

Connecticut’s New Law (Pending Governor’s Approval):

  • Stops Zombie Mortgages: Lenders can’t chase old second mortgages after 10 years.
  • Protects Homeowners: No more surprise foreclosures over forgotten loans.

Quote from State Sen. Pat Billie Miller:
“No one should lose their home over predatory loans from the 2008 crisis. This bill closes a legal loophole that preyed on families.”

The Big Picture

⚠️ Warning Sign: Rising zombie homes = economic stress (high inflation? job losses?).
🌈 Silver Lining: Today’s market is stronger than 2008. Buyers snap up foreclosures quickly, keeping neighborhoods healthier.

Expert Insight (ATTOM CEO Rob Barber):
“So far, the system’s working. But watch out—if foreclosures keep rising, zombie homes could haunt us again.”

What’s Next?

  • Track Local Policies: More states may copy Connecticut’s anti-zombie laws.
  • Sell or Save: Owners in trouble should talk to banks early to avoid abandonment.

Bottom Line: Zombie homes are creeping back, but smart policies and a strong housing market are keeping the apocalypse at bay… for now. 💀🔨

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