Definitive Guide To Selling Your Zombie House In New Jersey

Inheriting a property, facing foreclosure, or simply relocating can result in a vacant house.

Regrettably, prolonged vacancy can transform a property into a “zombie house” – a home stuck in legal limbo, neither occupied nor officially foreclosed upon. Houses that are not in foreclosure, can become zombie houses also (disrepair, unkept, distressed).

New Jersey, in particular, grapples with a high rate of these zombie foreclosures.

If you need to sell a zombie house in the Garden State, this guide will provide the knowledge and resources to navigate the process successfully.

Contents

• Impact of Zombie Foreclosures
• Considering Your Options
• Selling Your Zombie House
• Jeff Buys Houses Cash Solution
• Conclusion

Understanding Zombie Foreclosures in New Jersey

The phenomenon of “zombie foreclosures” arises when homeowners abandon a property during the foreclosure.

This can leave the house in disrepair, as the bank may be slow to finalize the foreclosure, creating a nuisance for the surrounding neighborhood.

Here’s a closer look at why they happen:

• Lengthy Foreclosure Process: New Jersey has a foreclosure process, takes an average of 730 days to complete. This extended timeline allows homes to languish vacant for months, even years.
• Backlog at Lenders: Lenders can become overwhelmed with a high volume of foreclosures, leading to delays in processing paperwork and finalizing the foreclosure.
• Strategic Holding by Lenders: In some cases, lenders may strategically hold off on foreclosing, hoping the housing market improves, allowing them to sell the property for a higher price.

Impact of Zombie Foreclosures

Zombie foreclosures hurt both the property owner and the community:

• Decreased Property Value: Vacant and neglected houses drag down the value of neighboring properties.
• Safety Concerns: Unmaintained properties become targets for vandalism, squatter occupation, and harbor health hazards like mold.
• Municipal Fines: Municipalities may impose fines on the owner for code violations related to the property’s deteriorating condition.

Considering Your Options: Selling vs. Short Sale

Selling a Zombie Property

While selling a zombie house presents challenges, it’s not impossible.

Here’s what you need to consider:

• Facing Reality: Be prepared to sell the property below market value. Zombie houses often require significant repairs and renovations to attract buyers.
• Preparing for Sale: Address cosmetic issues like overgrown lawns and overgrown shrubs. Secure the property to prevent vandalism and squatters.
• Finding a Real Estate Agent: An experienced agent specializing in distressed properties can be invaluable. They will have the expertise and network to market the property effectively to cash buyers and investors.
• Setting Realistic Expectations: Understand that the selling process may take longer than a traditional sale due to the property’s condition.

Short Sale

A short sale allows you to sell the property for less than the amount owed on the mortgage. The lender agrees to forgive the remaining debt.

• Pros: Short sales can help avoid foreclosure and a deficiency judgment (lender suing you for the remaining balance).
• Cons: The process can be lengthy and complex, requiring lender approval. Short sales can negatively impact your credit score.

Selling Your Zombie House: A Step-by-Step Guide

1. Research the Market: Analyze recent sales data in your neighborhood to understand the market value of comparable properties, considering adjustments for the zombie house’s condition.
2. Contact Your Lender: Discuss your situation and explore options such as a deed-in-lieu of foreclosure, where you transfer the property title to the lender to avoid foreclosure.
3. Hire a Real Estate Agent: Look for an agent with experience in distressed properties and a proven track record of selling zombie houses.
4. Price the Property Strategically: While you want to attract buyers, aim for a realistic price reflecting the needed repairs and market conditions.
5. Prepare the Property for Sale: Make necessary repairs to address safety hazards and improve curb appeal. This might involve securing the property, removing debris, and mowing the lawn. Consider virtual tours if major renovations are not feasible.
6. Market the Property Effectively: Partner with your real estate agent to develop a marketing strategy. This could involve online listings, yard signs, and targeted marketing to cash buyers and investors.
7. Be Prepared to Negotiate: Selling a zombie house often involves negotiations with buyers. Be flexible but stand firm on your minimum acceptable price.
8. Close the Deal: Once you have an accepted offer.

Jeff Buys Houses Cash Can Offer A Potential Solution.

Here’s how their services can be helpful in this situation:

• Fast Cash Offers: They specialize in buying houses quickly for cash, eliminating the traditional selling process with its delays and uncertainties. This can be attractive when dealing with a zombie property that might struggle to attract traditional buyers due to its condition.
• No Need for Repairs: Unlike traditional sales, you won’t need to invest in repairs or renovations before selling. Jeff Buys Houses Cash purchases properties “as-is,” meaning they take care of the necessary repairs themselves. This saves you time, money, and the hassle of coordinating renovations.
• Avoiding Foreclosure: A quick cash sale can help you avoid the negative consequences of foreclosure, such as a damaged credit score and potential legal action.
• Streamlined Process: Their process is typically streamlined and straightforward. You can receive an offer within 24 hours and close the deal in as little as 7 days [source: Jeff Buys Houses Cash website]. This can be a significant benefit, especially if you need to move on quickly from the property.

Important Considerations:

• Below Market Value: Cash buyers like Jeff Buys Houses Cash typically offer below market value to account for the repairs and renovations they’ll need. While it might not be the highest price you could get, it guarantees a fast sale eliminating the uncertainties of the traditional market.
• Limited Flexibility: Since the process is quick and involves a cash offer, there’s less room for negotiation on the price compared to a traditional sale.]

Selling your New Jersey zombie property to a cash buyer like Jeff Buys Houses Cash can be a viable option if your top priorities are speed, convenience, and avoiding foreclosure.

However, weigh the guaranteed cash offer against the potential for a higher selling price through a traditional sale with repairs.

Ultimately, the best choice depends on your specific circumstances and financial goals.

Consider consulting a real estate agent and comparing offers from different buyers, including cash buyers, before deciding.

Conclusion

Selling a “zombie” property in New Jersey – an abandoned or neglected home – demands patience, specialized know-how, and ample resources.

To successfully navigate this process, you must first understand the unique challenges involved, carefully consider your options, and diligently follow the steps outlined.

Enlisting the support of an experienced real estate agent specializing in distressed properties will be your greatest asset.

With their expertise and personalized guidance, you can transform your zombie house into a closed sale, resolving a stressful situation and potentially opening the door to a fresh start.

Leave a comment with your thoughts. We would like to hear from you. Also, was there anything missing in this post?

Additional Resources:

• Foreclosure Resources: New Jersey Department of Community Affairs
• New Jersey Housing and Mortgage Finance Agency – Homeowner Resources:

Disclaimer: This blog post is for informational purposes only and should not be construed as legal or financial advice. It’s always recommended to consult with a qualified attorney and financial advisor when dealing with complex real estate transactions.