While South Florida has seen a significant drop in Zombie Foreclosures it is still a SPOOKY phenomenon that homeowners facing foreclosure should be aware of.
A Zombie Foreclosure can occur if a homeowner abandons their home once the foreclosure process has started. The homeowner moves away thinking the house will be lost to the bank. The sale is cancelled (for one of many reasons) and title is never transferred to a new owner. The title remains in the homeowners name and costs can begin to accrue because there is still the obligation to pay for HOA dues and assessments, property taxes as well as maintenance by the owner of the property. Bills or lawsuits may become a problem months or even years later for these financial obligations.
There are two options that may help avoid the horror of a Zombie Foreclosure. One is to stay in the home throughout the entire foreclosure process - not moving out until the official foreclosure sale has occurred. Should one no longer wish to stay in the home, a short sale is another option. This strategy will allow the sale to go through, even if more is owed than the house is worth. Combined with a bankruptcy, a short sale is an excellent way allow to help rebuild your credit quicker than allowing the home to foreclose.
When faced with foreclosure, there are many legal options that may help you meet your objective. Please contact our office if you need more information.
Segaul Law Firm
300 S Pine Island Road, Suite 304
Plantation, FL 33324