Posts Tagged: ‘Zombie Foreclosure’

New York Attorney General Fights Against Zombie Foreclosure Crisis

August 1, 2016 Posted by kingcade

New York Attorney General Eric Schneiderman recently announced a grant initiative to fight against the zombie foreclosure crisis. The growing problem has affected hundreds of neighborhoods and towns across the state of New York since the housing bubble burst. The initiative known as, the Zombie Remediation and Prevention Initiative, will give $13 million in grants to local governments across the state through a competitive application process.

The 100 communities dealing with the greatest problems of zombie foreclosures and vacant homes have been invited to apply for the funds. The money will address housing vacancy and the damage to property value in neighborhoods by supporting municipalities’ capacity for housing code enforcement, tracking and monitoring vacant properties and providing legal enforcement to ensure banks and mortgage companies comply with local and state law.

The initiative will also have preventative benefits due to the requirement of communities to develop innovative programs and policies and connect at-risk homeowners to services so they can avoid foreclosure. It also coincides with the recent enactment of the Abandoned Property Neighborhood Relief Act.

The initiative will be funded by the $3.2 billion settlement agreement with Morgan Stanley that was settled in February. The settlement resulted in $550 million in cash and consumer relief for New York residents.

“Too many communities across this state have been hit hard by the proliferation of zombie properties. This new grant initiative puts tools directly in the hands of towns and cities across the state to reverse course, rebuild from the foreclosure crisis and put zombie homes in the rear-view mirror,” Attorney General Schneiderman said.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

 

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Zombie Foreclosures: What Homeowners Need to Know

June 9, 2016 Posted by kingcade

If you are facing foreclosure, it’s a good idea to not move out of your home too quickly- you could be haunted by what’s called a “zombie foreclosure.”  Some homeowners quickly pack up and leave after receiving a foreclosure notice because they assume the bank will take over the property immediately.  However, in some cases, the bank does not always move so fast.  While the bank is finishing up the foreclosure process, the home can sit vacant for months while still in the homeowner’s name.

A zombie foreclosure can lead to devastating consequences for the homeowner.  Oftentimes, these occur in low-income areas where the lender is not too anxious to assume the responsibility and upkeep of the property, along with paying the taxes.  If squatters occupy the property or it falls into severe disrepair, the bank may ultimately wash its hands of the property.

Other times, the property may have been part of the robo-signing scandal and the foreclosure cannot be completed, the sale was never held, the paperwork was lost, or the title was never officially transferred into the new owner’s name.  All of these circumstances result in the title remaining in the foreclosed homeowner’s name.

The states with the highest number of zombie properties include Florida, Illinois, New York and New Jersey, according to RealtyTrac.  Zombie foreclosures can spell disaster for homeowners.  Since the title is never transferred out of the foreclosed homeowner’s name, they are on the hook for certain debts and expenses like property taxes, HOA dues and maintenance fees for upkeep of the property.  These  debts can go unpaid for years, without the homeowner even knowing they have a legal obligation to pay them, further damaging their credit.

If you leave your property and the title is never transferred out of your name, the following things can happen (among others):

  • The tax collector can come and collect from you back property taxes;
  • The HOA may file a lawsuit to recover unpaid dues;
  • You can incur fines for not complying with housing codes and ordinances;
  • You can incur bills for yard maintenance, repairs, trash and graffiti removal, etc.

So how can homeowners avoid a zombie foreclosure?  Remain in your home for as long as possible during a foreclosure.  You will be less likely to become a victim of a zombie foreclosure if you stay through the entire foreclosure process and wait for an official notice to vacate before moving out.  Confirm the title has been transferred out of your name.  You can do this by going to the county recorder’s office where the property is located to make sure a new deed has been recorded.  You can also check your local county recorder’s website.  It is important to do this because in some cases the bank is not legally required to inform you that the foreclosure has stopped.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://www.nolo.com/legal-encyclopedia/zombie-foreclosures.html

 

Zombie Foreclosures: Debt that Won’t Die

February 27, 2013 Posted by kingcade

There is a new foreclosure trend surfacing in the housing market called “zombie foreclosures.” This is where homeowners move out of homes after receiving notice of foreclosure and find out months or even years later that either: the auction never took place or the bank never transferred the deed. If this occurs, the borrower is technically still the owner and still owes property taxes and homeowner’s association fees. Since the housing market crashed in 2008, there are nearly two million foreclosures that have been lingering in the court system but have never completed the foreclosure process.

Analysts estimate that there are tens of thousands of zombie foreclosure cases. Typically, zombie foreclosures occur in low-income areas because the banks have had difficulty selling the properties in these areas. As a result, the banks delay actually taking over the deed to avoid paying property taxes. If this happens to a borrower, it can take years before they find out they still technically own the property. This has been extremely damaging to borrowers who are already suffering, financially.

A number of recent lawsuits have been filed against banks for faulty foreclosure practices. If you find yourself in a similar situation, you should contact a foreclosure defense attorney immediately. You should also contact a community advocacy group such as NeighborWorks America or NCRC.

To read more on this story visit: http://money.cnn.com/2013/02/20/real_estate/zombie-foreclosures/index.html?iid=SF_PF_River

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.