How Do Zombie Foreclosures Have an Effect on Me?

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foreclosureZombie foreclosures involving vacant homes have become a plague to many local governments, which have to deal with cleaning up weeds, boarding windows and other upkeep on empty properties.

Additionally, if you live in an area with a high amount of vacant homes, it can drag the property value of your home down.

Some experts think that banks are taking their time to foreclose on the homes, as they would have to pay back taxes, code enforcement fees and other things associated with the process.

TIME Magazine had an interesting story about zombie foreclosures, which involve homes abandoned by their owners that have not yet been taken over by banks. According to the news outlet, as of last month, there were 141,406 homes in the zombie foreclosure process, down 16 percent from a year ago.

It is upsetting that there are so many vacant homes in existence in this country. Keep in mind, if you are facing the threat of foreclosure, there are programs like the Home Affordable Refinance Program (HARP) and the Home Affordable Mortgage Modification Payment (HAMP) that could work to reduce your mortgage payment.