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Zombie Properties: What You Need to Know Before Buying

An Abandoned Eden Prairie House with an Overgrown LawnDo you want to get single-family Eden Prairie rental properties as an investment? If that is the case, you should be informed about the “zombie property” (also called a “zombie foreclosure”) phenomenon. A zombie property is a property that has been abandoned by the owner but has not yet gone through the formal foreclosure process. This can create some extra hurdles for potential buyers. This blog post will describe a zombie property and sketch out the steps you need to take to acquire one.

What is a zombie property?

When the homeowner abandons a property before the foreclosure process is completed, this is called a zombie foreclosure. If a property owner defaults on their mortgage, they may feel compelled to move out instantly, even though foreclosure has only started. They may also abandon the property for other reasons. Since the foreclosure process is ongoing, this zombie property is still owned by the homeowner, not the bank or lender. Generally, these properties remain vacant for long periods, falling into disrepair and causing safety and property value issues for the entire neighborhood. Also, the home’s financial responsibilities keep growing for the owner, from property taxes to Home Owners Association assessments and fines – and more.

How can I buy a zombie property?

As you can see, owning a zombie property can be complicated. That doesn’t mean you shouldn’t consider buying zombie properties, but you need to know about the risks and take extra steps to protect your investment. Here are some tips you need to do if you’re interested in buying a zombie property:

  • Do your research: You must have a comprehensive knowledge of what you’re getting into before making an offer on a zombie property. This includes researching the property, the neighborhood, and the current market conditions. If you are unacquainted with the place, the safest choice is to contact a local property management company with extensive knowledge in investment property transactions.
  • Get a good home inspector: A professional home inspection is even more vital if you like to acquire a zombie property. It would be best if you employed a qualified inspector who can spot any and all potential issues with the property.
  • Have realistic expectations: You must remember that a zombie property is, by definition, a distressed property. For that reason, it will probably require both repairs and renovations and may not be up to your usual standards. Don’t forget to factor this into your offer price.
  • Get expert help: Buying a zombie property can be confusing, so it’s important to have an experienced real estate agent, Eden Prairie property management company, and an attorney on your side. They can help you navigate the process and protect your interests.

If you wish to acquire a zombie property, you should do your research and seek professional assistance. You can convert a zombie property into a profitable investment with some extra care and attention.

At Real Property Management Viking, we work with rental property investors to find and assess properties for sale. Our local market experts can help you thoroughly review the market, set accurate rental rates, and optimize your investment. Contact us online to learn more.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.