BiggerPockets Daily "Zombie" Foreclosure Rates Rise Across the U.S.—What Does That Mean For Investors
7 snips
May 30, 2025 Zombie foreclosures are on the rise, with over 7,300 abandoned properties across the U.S. up for grabs. These vacant homes could present golden opportunities for astute investors. Areas like Wichita are seeing remarkable zombie rates, while North Carolina experiences a staggering 52% increase. Insights reveal why homeowners are abandoning properties and how investors can navigate the risks and rewards of these distressed assets. Six key strategies for successful investment in foreclosures are also highlighted, making this an intriguing market to watch.
AI Snips
Chapters
Transcript
Episode notes
What Are Zombie Foreclosures?
- Zombie foreclosures are abandoned properties left vacant during the foreclosure process.
- These homes sit in limbo, not owned by banks nor maintained by owners, deteriorating over time.
Geographic Concentration of Zombies
- Zombie foreclosures concentrate in pandemic boom areas now facing market corrections.
- The South and Midwest show the highest spikes in such abandoned properties.
Why Zombies Appear: Economic Factors
- Homeowners abandon low-equity properties due to lack of payment incentives.
- Lenders also walk away when foreclosure costs exceed property values, deepening the housing limbo.