Posts Tagged ‘Upside Down’

Zombies Are Here (Image: Wikimedia Commons)

Zombies Are Here (Image: Wikimedia Commons)

The “course corrections” (to put it mildly) of the real estate market over the last few years has introduced several new terms to our everyday real estate lexicon. Among these are terms like “distressed property,” “short sale,” “shadow inventory,” “upside down,” and “under water.” Here are a couple more new terms: “zombie homes” and “boomerang buyers.”

“Zombie homes” or “zombie foreclosures” refer to a property abandoned by the homeowner prior to the lender gaining possession of the property through foreclosure. In more than a few cases, homeowners receive a notice of sale from their lender, prompting them to move out under the (mistaken) belief that the lender has assumed ownership of the home. However, until the lender formally takes possession of the property at the conclusion of the foreclosure process, the homeowner remains legally responsible for the property. This is clearly a serious issue. Even more serious are the cases where the lender never actually takes possession of the home and the owner only learns about the situation years after – all the while still remaining legally responsible for the property.

If you’re having trouble making your payments, don’t wait for the situation to become completely out-of-hand. Sometimes a short sale is a good solution to the problem. Seek the assistance of competent real estate and legal professionals who can offer sound advice and assistance.

Our other “new” term, “boomerang buyers,” refers someone who lost a property to foreclosure, short sale, or bankruptcy, but is now once again eligible for a new mortgage. Expect to see this demographic continue to grow as those who suffered through our recent real estate mess are once again able to return to the home ownership market.

If you happen to be a “boomerang buyer” interested in returning to home ownership, please feel free to get in touch with me. I’d be happy to help put you in touch with lenders who can consult with you regarding your situation and your options.

(Source: The KCM Blog)


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