NEW YORK (MainStreet) — The nation’s housing market is on the mend. In many neighborhoods the only problem is lack of inventory for sale. And then there is a starker, darker reality: 127,021 homes nationally are what real estate data company RealtyTrac calls zombies, and that is one in every four homes in the foreclosure process. They are strangling neighborhoods, even some towns.
A zombie happens when the homeowner has packed up and moved out - but the mortgage holder has not taken title to the property. What that means is that, usually, all maintenance stops. Lawns aren’t mowed. Snowy sidewalks are not shoveled. Broken window panes are not replaced. Thieves may steal the piping, wiring, sometimes even appliances. Squatters may occupy the dwelling. The house very quickly becomes an eyesore - and a rule of real estate thumb is just one derelict eyesore on a block can ruin the whole block. And a few in a neighborhood can lower the property values throughout the community.
Don’t think the brisk housing market has cured the zombie problem. RealtyTrac numbers make clear this continues to be a huge issue - in at least some areas of some states.
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Zombies are great investments. For instance, a house in my old neighborhood in the DC suburbs. House sat abandoned for 3-4 years. Eventually, was sold for 180K. It was nicely renovated, and 6 months later sold for 320K.
ReplyDeleteEasy money.
It's killing us people in the working class who have to rent their homes because of imperfect credit.Every back road on Delmarva has everything from farmhouses to modular mobile homes sitting empty with weeds and grass out of control.There are even more in the more populated town limits in any town too.The overgrowth outside is always a clue.They in turn,sell the foreclosures to some investor and bypass regular people who want to own their own home and WILL pay their rent/mortgage.
ReplyDeleteI may have credit but if I have paid approximately $750 a month in rent for the past 12 years or so,having NEVER missed a month of rent due,doesn't that kind of give lenders a clue that I would not skip out on a home?
I tried to buy a foreclosure last year that had everything including electrified outbuildings,acreage and solitude plus the older home had updated electric and original hardwood floors and mouldings.Long and Foster was asking only 36k so I contacted the agent.Like I said my credit rating is not so great so I hoped if I could do a DP of 25% I might get a loan.Now,a year later,its still empty with tall grass.
There are some investors who offer "rent to own" contracts on houses they buy at a low price,but the caveat is YOU are responsible for all repairs in most of those contracts.
If you can't afford a house that costs 36k, you can't afford a house. It's quite simple.
ReplyDelete