The number of owner-vacated “zombie” foreclosures at the end of the second quarter stood at 127,021, representing a 10 percent decline in volume when compared with the same quarter last year.

The number of owner-vacated “zombie” foreclosures at the end of the second quarter stood at 127,021, representing a 10 percent decline in volume when compared with the same quarter last year.

According to recent data from RealtyTrac, zombie foreclosures — a situation where the distressed homeowner vacates the property — account for roughly 1 in 5 properties in foreclosure nationally.

Because the average estimated market value of an owner-vacated foreclosure — nearly $196,000 — is 22 percent below the average estimated market value of an owner-occupied foreclosure, it’s in a foreclosing bank’s best interest to have a home occupied during the process.

“A growing number of states and cities have enacted public policy measures to combat the problem of ‘zombie’ foreclosures, and we are seeing the results of those efforts in the overall decrease nationwide, as well as in several hard-hit markets such as Chicago, Miami and Cleveland,” said Daren Blomquist, vice president at RealtyTrac.

During the second quarter, the number of zombies decreased by 28 percent in Chicago and 46 percent in Miami — the largest decrease of any metro. Of the nation’s top 20 cities, 10 saw a decline in zombie volume in comparison to the second quarter of 2014. Dallas, Atlanta and Phoenix represent some of these cities. These markets experienced declines of 27 percent, 33 percent and 14 percent, respectively.

image005

On the flip side, 10 major metros saw a rise in zombie volume — led by San Diego/Carlsbad, a 292 percent increase, and California’s Inland Empire, a 165 percent spike.

RealtyTrac noted as banks push through long-deferred foreclosures, which are more likely to be owner-vacated this year, the firm is seeing an increase in zombie foreclosures within markets that possess overall low foreclosure rates — Los Angeles, Houston and Boston. These three metros experienced spikes of 39 percent, 38 percent and 14 percent, respectively.

Out of the 183 metro areas RealtyTrac covers, 91 reported an increase in zombie volume.

The highest zombie rates among these 183 areas were found in Atlantic City, New Jersey (1 in 130 housing units); Trenton, New Jersey (1 in 166 housing units); Tampa, Florida (1 in 218 housing units); Binghamton, New York (1 in every 260 housing units); and Ocala, Florida (1 in every 262 housing units).

Email Erik Pisor.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×