The number of zombie properties – properties that were abandoned during foreclosure and have not yet been formally seized – dropped in Q3 2015, both from the previous quarter and year over year, according to real estate data firm RealtyTrac.
RealtyTrac's Q3 2015 U.S. Zombie Foreclosure and Vacant Property Report disclosed that 20,050 vacant U.S. properties had entered the foreclosure process but had not yet been repossessed, which represents a drop of 27% from Q2 2015 and 43% from Q3 2014.
These results mean that 1.3% of all vacant U.S. properties were in foreclosure and the percentage of bank-owned properties stood at 1.9% of all vacant U.S. properties during the quarter, according to the Irvine, Calif.-based firm.
“The overall inventory of homes in the foreclosure process has dropped 36% over the past year so it's not too surprising to see a similarly dramatic drop in vacant zombie foreclosures,” RealtyTrac Vice President Daren Blomquist said.
He added, “What is surprising is there are so many vacant homes where the homeowners do not appear to be in financial distress – with only 3% in foreclosure or bank owned, and only 6% that are underwater. More than 63% of these vacant homes are not even encumbered by a loan, owned free and clear by the owner. The fact that the homeowners are not selling given the recovering real estate market in most areas indicates that many of these properties are in poor condition and in neighborhoods that have been left behind by the housing recovery.”
States with the highest number of total vacant residential properties, according to the report, were Florida (roughly 181,000), Michigan (118,000), Texas (117,000), Ohio (86,000) and California (81,000).
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