Foreclosure initiations are on the rise, with 8.3% of homes in foreclosure stage in Baltimore being vacant.
Now that government protections against foreclosure by lenders have ended, foreclosure initiations are on the rise, with 8.3% of homes in the foreclosure stage being vacant in Baltimore, Cleveland among the largest cities with the highest rate of vacant foreclosures. It is next to
These properties are called zombie foreclosures.
One of the reasons foreclosed homes are vacant is that depending on the jurisdiction, foreclosures can take a long time.
Rick Sharga, executive vice president of market intelligence at real estate data firm ATTOM Data Solutions, said:
“At some point, the borrower will frankly give up and move on, leaving the property behind because they know that at some point they will inevitably lose it. I want to cut it.”
Zombie seizures are not good for your neighborhood.
“No one is actually taking care of the property. The borrower has abandoned it. And the lender cannot own the property until the foreclosure is complete. So now you can’t take care of anyone.” I got a property that I didn’t do and no one was watching,” Sharga said.
ATTOM Data reports that a total of 7,569 residential properties facing potential foreclosure were evicted by owners nationwide this quarter.
Rising mortgage foreclosures don’t necessarily bode as badly as they did during the Great Recession 15 years ago. Nearly 90% of foreclosed homeowners nationwide have positive assets.
“Having equity gives financially distressed homeowners a relatively soft-landing opportunity to sell their homes at a profit rather than lose everything in a foreclosure.” Sharga said.
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