The recession is behind us, and so, it would seem, is the worst of the housing market fall. However, you and many other Mississippi residents may continue to feel the bite of unresolved financial issues, especially if you are facing a foreclosure or have walked away from your mortgage.
Foreclosed homes that are owned by banks, especially those that their owners had no choice but to abandon, are referred to as zombie foreclosures. The housing market is recovering, reports CNBC, but there are still thousands of these zombified, vacant homes across the country. What you might not realize is that a zombie foreclosure could affect you for years. The bank that owns your former home might continue to pressure you to make mortgage payments, or could try to hold you responsible for liens on the property or for repairs.
Zombie homes are also seen as a blight on neighborhoods. If your former home is stuck in the foreclosure process for months or years, the house and yard can fall into disrepair. Sometimes, especially in low-income areas, squatters take up residence. Banks might fail to move the property through the foreclosure process, because it could take thousands of dollars to fix up the house enough to sell it.
Fortunately, banks are under more pressure these days to move homes faster through foreclosure, which can help you get on with your life without having to worry about a zombie complicating things. The information in this blog is meant to educate you, but should not replace the advice of a lawyer.