William H. Oliver, Jr. & Associates

Se Habla Espanol

Free Initial Consultation

Local 732-988-1500
Menu / Navigate View Our Practice Areas

What is a “zombie foreclosure?"

When homeowners fall behind on their mortgages and they cannot pay the bills, two options tend to present themselves. One, they can file for bankruptcy and either modify the payment structure or liquidate the home’s equity to avoid foreclosure. Or, they can accept the foreclosure and move on with their lives. Sometimes, however, a foreclosure is not what it seems.

Homeowners who receive a foreclosure notice tend to believe the bank is going to take the home back and auction it off to cover the unpaid mortgage. That is the definition of a foreclosure, however. But if the bank does not officially seize the home, the former owner who may have left years ago may find themselves saddled with taxes and other fees on a house they have not lived in for quite some time. This is called a zombie foreclosure. 

The rate of zombie foreclosures has dropped substantially since last year, but Americans all over the country are still feeling their impact. As it turns out, no state is hurting more than New Jersey. One in every 210 homes within the state are zombies, waiting for someone to pay the mounting expenses. In fact, the largest portion of zombie foreclosures are in the Northeast.

If you are facing a foreclosure, it is important to speak to an attorney before signing any paperwork. They can explain your different options, including filing for bankruptcy. In addition, an attorney can review the foreclosure papers and may be able to stop it from becoming a zombie.

No Comments

Leave a comment
Comment Information

Get Help Now

Bold labels are required.

Please note that First AND/OR Last Name, and Email AND/OR Phone are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

FindLaw Network

At the law offices of William H. Oliver, Jr. & Associates in Toms River and Lakewood, New Jersey, we represent clients in Toms River, Neptune, Trenton, Middletown, Red Bank, Wall, Lakewood, Lakehurst, Manchester, Asbury Park, Old Bridge, Jamesburg, Barnegat, Forked River, Manahawkin, Ocean Township, Brick, Manasquan, Howell, Freehold, Hazlet, Bradley Beach, Brown Mills, Long Branch, Keansburg, Marlboro, Bayville, Beachwood, Whiting, Sayreville, South River, East Brunswick, Monmouth County, Ocean County, Middlesex County, Burlington County and Mercer County.