A property characterized as “zombie” exists in a legal limbo where the homeowner has moved out following the initiation of foreclosure proceedings, assuming the process will conclude with the bank taking ownership. However, the bank halts or delays the foreclosure, leaving the original homeowner still legally responsible for the property. This situation often results in neglected maintenance, unpaid taxes, and potential code violations, as the property is effectively abandoned but not officially owned by the foreclosing entity.
These situations create significant challenges for communities. Blighted homes can decrease property values in the surrounding area, attracting crime and posing safety hazards. The original homeowner faces continued financial burden, including potential liability for accidents on the property and ongoing tax obligations, despite no longer residing there. Historically, economic downturns and shifts in lending practices have contributed to a rise in these complicated legal scenarios, exacerbating neighborhood decline and individual financial hardship.
