With zombie foreclosures becoming a trending topic on major search engines this week, the public doesn’t need to worry about killer homes coming alive to attack people. Yet CNN News reported this Wednesday, Feb. 20, that these dubbed zombie foreclosures are coming back to “haunt” the money in borrowers’ pockets, even after they’ve moved.
In these new zombie foreclosures, borrowers who have been moving out of their foreclosed home following an auction are finding this 2013 that some months — or even years afterwards — that the auction was never made official, or that the bank at hand failed to transfer the house’s deed. This results in borrowers still being in ownership of the home, legally at least, and result to pay for all those property taxes and homeowner fees.
Nearly two million properties began to foreclose their homes but failed since the crash several years ago, said RealtyTrac. Though some families wanted to stay in their homes, another of those million are stuck in the process with a possible tens of thousands of homeowners haunted by this zombie foreclosure state.
The report adds that many of these homeowners encountering difficulty with the process are in low socioeconomic areas where selling a house can be especially hard, leading to lenders delaying to possess the property so that they will not have to pay these dues that legally remain under the name of the original borrower.
If these debts go unnoticed or unpaid for too long, these zombie foreclosures can indeed take a bite out of people’s credit scores, so be alert for any home hauntings, warns the report.