Here’s the latest trend in foreclosures and real estate– Zombie Foreclosures. See this article from the Chicago Tribune:

http://www.chicagotribune.com/classified/realestate/foreclosure/sc-cons-0418-umberger-20130419,0,2297043.column

What is a “Zombie” foreclosure? It’s where the foreclosure has started, the owners often leave the house empty, but the bank doesn’t finish the foreclosure process.

The writer points out that the statistics are scary, because more “Zombie” foreclosures mean that more houses are just sitting in foreclosure, “in limbo”, because the bank doesn’t want to take responsibility for the responsibilities of home ownership. Once the bank finishes the foreclosure process, they have to keep the grass cut, keep the property looking good, etc. Illinois has the 3rd most Zombie foreclosures with 31,668.

What does this mean for homeowners in foreclosure? The general rule is that until the bank finishes the foreclosure process, the homeowner is responsible for keeping the property from “going bad”. That means that the homeowner has to be sure the grass is cut and the home is secure. If the grass isn’t cut, or the home is blighted, the town or city will issue tickets—to the homeowner—NOT to the bank! So you can see this can be a huge problem, especially for homeowners who have already moved or want to move out, and just get rid of the property.

It is important that if you are in this kind of situation that you talk to an experienced bankruptcy and foreclosure attorney as soon as possible to find out what the best option is for you.

Daniel J. Winter
BankruptcyLawChicago.com
djw@DWinterLaw.com
312-789-9999
Offices in Chicago, Gurnee, Oak Lawn, Skokie, and Waukegan, Illinois