Today I'm going to talk about Zombie Foreclosures.
Many of my clients in Libertyville have been asking me about a strange phenomenon called Zombie Foreclosures. A Zombie Foreclosure is a situation that occurs when you have left your home and it has been foreclosed, but you are still on the title to the property. This is essentially a property that is in your name because the bank did not come back and repurchase the property in a sheriff’s sale.
It’s extremely important to figure out if you are still on the title to the property because it can prevent you from purchasing a new home. FHA rules state that you cannot make a new purchase until you are off of title for 36 months.
Zombie Foreclosures are difficult to detect and most loan officers will not take the time to do a thorough check for them. However, there is one way to find out, and that is by contacting the Recorder of Deeds Office and purchasing a copy of the deed for your home. You can also call your local title company here in Libertyville and have them search for your name (this costs around $75).
It’s extremely important before going through the mortgage process to figure out if you have a Zombie Foreclosure because it could affect your buying power for years to come. If you need any assistance in this process or if you would like to learn more about Zombie Foreclosures, please feel free to contact me via phone or email.