Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

There May be Zombies in Your Neighborhood

columbusceo.com | July 21, 2014

By Alan J. Heavens

Residential real estate has its own version of the 1968 cult classic “Night of the Living Dead.” You could call it “Zombie Foreclosures.”

RealtyTrac, a search engine that collects real estate data nationwide, defines the phenomenon: “Properties that have started the foreclosure process but have never been foreclosed and the homeowner has vacated.”

One in five U.S. homes in foreclosure, or 141,406, are zombies, it says.

Andrew Frank, of Long & Foster Real Estate in Blue Bell, Pa., said he’s been told that many zombies rose from the “robo-signing” era of 2008 through 2010, when some mortgage servicers didn’t bother to read foreclosure documents before submitting them to courts or other agencies for action.

“Even though the defaulters have vacated, the courts forced the banks to restart the foreclosure process, which added to the already high volume at the time,” Frank said.

Zombies sit in all kinds of neighborhoods, among the well-to-do and the less well-heeled, local observers said. In some cases, said Carol McCann, of Re/Max Millennium in Philadelphia, many who received notices of foreclosure simply vacated, “assuming that the bank now owns the property.”

At the height of the foreclosure crisis, sales of distressed housing outpaced all others, depressing prices and undercutting efforts by home builders.

“If lenders put them all on the market for sale at once,” it would drastically change property pricing, said Noelle M. Barbone, office manager at Weichert Realtors in Media, Pa.

That has little chance of happening, however.

“We have submitted good (purchase) offers to banks, but there is still way too much red tape to make anything move faster or get better,” said Val Nunnenkamp, of Berkshire Hathaway Home Services Fox & Roach Realtors in Marlton, N.J.

Frank Dolski, of Coldwell Banker Hearthside in Lahaska, Pa., said zombie properties often sit as long as three years. In one case, in a “million-dollar neighborhood,” one property that has not been maintained has had an impact on the values of others.

“When the bank finally sells, the subject property will be tremendously affected,” Dolski said.

Attorney William D. Schroeder Jr. estimated he had 10 zombies in his client files.

“A number of my clients have surrendered them as part of a Chapter 7 (bankruptcy),” he said. “I notify the mortgage company departments and the companies do not move forward.

“I personally believe their inventory is just too large and they are understaffed,” Schroeder said. “The properties sit there blighting the neighborhood. I advise my clients to take the minimum steps to secure the property and keep it safe from the elements and vegetation.”

RealtyTrac said Wells Fargo had the most zombies — 18,695 nationally.

Wells Fargo spokeswoman Barbara Nate said it does not comment on “reports issued by third parties.”

If a property is delinquent and vacant and has not yet gone to foreclosure sale, she said, Wells Fargo moves to complete the foreclosure quickly and maintain and secure the property in the interim.

She said the lengthy foreclosure timeline in certain areas “delays our ability to complete renovations to get many properties on the market and in the hands of new owners.”

 

Back to July 2014 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer
Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:


 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package

 

ALB Law Firm

 

Advocate Legal

 

The True News Network

 

Sutton Law Firm, P.L.L.C.

 

Rubenstein Business Law

 

Atighechi Law Group

 

Scunziano & Associates

 

Get Certified to Perform Mortgage Securitization Audits

 

CFLA Training Academy

 

Expert Witness Services

 

Cutting Edge Expert Securitization Reports

 

CFLA Credit Cards

 

Breaking News

 

Letters to the Editor

 

CFLA Weekly Newsletters

 

Code of Ethics

 

Testimonials

 

Instructional Videos

 

Job Opportunities

 

License Opportunities

 

MARS Rule

 

Product Samples

 

Resource Links

 

Servicer Information

 

Foreclosure Laws

 

REST Report

 

Quiet Title Packages from Licensed Attorneys

 

Advertise on CFLA

 

Advertising Space: Mortgage Securitization, Quiet Title

 

Certified Forensic Loan Auditors, LLC
13101 West Washington Blvd.
Suite 444
Los Angeles, CA 90066

Phone: 832-932-3951
Toll Free: 888-758-CFLA (2352)
Mobile Users: CLICK TO CALL
info@certifiedforensicloanauditors.com

   
 
CFLA IS NOT A LAW FIRM AND DOES NOT PROVIDE ANY LEGAL ADVICE. CFLA DOES NOT OFFER FORECLOSURE CONSULTING OR FORECLOSURE RELIEF
SERVICES. CFLA DOES NOT OFFER OR ASSIST WITH ANY LOAN MODIFICATION SERVICE. CFLA ALWAYS RECOMMENDS THAT CLIENTS RETAIN COMPETENT COUNSEL IN THEIR RESPECTIVE JURISDICTION. CFLA HAS A FREE PROGRAM TO REFER CFLA CLIENTS TO LAW FIRMS IN NEARLY EVERY STATE AND CFLA
DOES NOT CHARGE OR OBTAIN REFERRALS FEES FOR THESE SERVICES. SERVICES NOT OFFERED TO RESIDENTS OF THE STATE OF NEVADA.

 
Home About Us Privacy Policy Terms of Service Disclaimer SERVICES Careers Contact Us
 
COPYRIGHT © 2007-2016 Certified Forensic Loan Auditors ™ All rights reserved