So-called “Zombie Foreclosures,” where the foreclosed property owner walks away, continue to decline in New Jersey and nationally. A zombie foreclosure is a property that is in the foreclosure process and is vacant. Basically, the home owner has left, even before they have been foreclosed on, and the bank has not taken back the property.
There’s been a big drop in zombies as a result of an improving economy.
Vacant properties, in the wake of this last housing crisis, became quite a problem in places like New Jersey, especially with a very long foreclosure process where those properties were sitting vacant for a long period of time, falling into disrepair and then also dragging down the values of surrounding properties because of their obvious disrepair.
New Jersey’s zombie properties have fallen to 900 from 2,300 a year ago.
The State remains in the Top 10 for zombie foreclosures, but has dropped from No. 1.
There has been improvement in reducing zombie foreclosures in the country as a whole. There were 44,000 in 2013. The number of zombies from across the country is now less than a quarter of what it was five years ago.