A new law in Ohio is aimed at speeding up the foreclosure process for vacant properties and will hopefully reduce the number of vacant properties lenders let turn into zombie properties. A process that takes years is now expected to take a couple months and keep lenders from forcing damage liabilities on homeowners after moving out.
Zombie properties are vacant homes that are often abandoned and show signs of deterioration. Boarded up windows and doors, unruly lawn care, emptiness, vandalism, and degrading siding and outdoor structures are typical aspects of a zombie property. Vacant homes and the lengthy foreclosure process is a burden on community, local resources because lenders fail to maintain the properties and let them turn into zombies.
A foreclosing property can sit vacant for a long time because homeowners will move out of the property before the required date. Usually a family can continue living in a home until being informed the property has sold. After the family moves out of the property there is no one left to upkeep the property besides the banks or lenders.
Shortening the foreclosure process can promote home renovators to flip and rebuild the properties before there is too much deterioration damage. Damaged vacant properties can lower surrounding property values and make an area seem unappealing to prospective new residents.
The fast track foreclosure process will also focus on reducing paperwork and court hearings necessary for vacant properties. This process will save time and money for banks and force lenders to take responsibility for vacant properties that turn into zombies.