What might conceivably be the upside in an increased number of for-sale signs being seen in any American neighborhood that result from foreclosure and repossession?
For many people in Texas and elsewhere, those signs are clearly just dismal reminders that struggles persist for many homeowners. Even years after the so-called Great Recession and the monumental fallout from the nation’s housing crisis, problems persist across the country for homeowners who just can’t remain above water on their mortgage obligations.
A special term has emerged to describe a particular type of foreclosure, namely, the situation where an overwhelmed homeowner simply shuts off the lights and walks away permanently from a property.
The phrase “zombie foreclosure” has gained broad parlance in that context.
With a typical zombie foreclosure, certain things are often evident. For starters, an affected property stands out from other residences, given the lack of care it is receiving. There is no homeowner to cut the grass, fix broken windows and collect the mail. And, there is often no action taken — sometimes for years — by a lender turned off by dire prospects of reselling such a home.
A recent media report on zombie foreclosures indicates that they are still a strong reality across much of the country. In fact, the national organization RealtyTrac states that about one of every four homes in foreclosure nationally last month was already abandoned when repossessed by a lender.
So, again, what’s the bright side — if any — to that?
Commentators note that such properties cannot simply sit vacant forever, and that a positive spin attaches to lenders finally stepping in and dealing with them. Once they do, the clock starts ticking toward the day when a resale — or demolition, in some cases — occurs.
And that is good for everyone involved.
Foreclosures continue to be an oft-reported media topic across the country as the nation continues to work its way through the troubled economic times of recent years.
It is certainly good to hear that there is a positive aspect to increased foreclosure reports. Conversely, though, and for obvious reasons, it will be an even more welcome development when foreclosure-related stories occur only infrequently in Texas and nationally.