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For a homeowner who is struggling to make their mortgage payments, there is nothing more stressful than the threat of foreclosure. Unfortunately, many homeowners every year are faced with this reality upon receiving notice of their lender’s intent to foreclose. However, in some cases, this doesn’t automatically mean it’s time to give up ownership and move out. There are a variety of reasons a lender may decide to unexpectedly dismiss the action, in turn, leaving the property’s title as is. Homeowners who haven’t consulted a foreclosure attorney and aren’t aware that this can happen may find themselves involved in a zombie foreclosure. Here is some insight into what this means and how it should be handled. 

What to Know About Zombie Foreclosures 

What Is a Zombie Foreclosure?

A zombie foreclosure occurs when a home is left vacant by homeowners who mistakenly believe they must vacate after getting a foreclosure notice. Typically, they are under the assumption the lender has already taken over responsibility for the property, but the truth is that it’s still possible for the foreclosure process to be halted or canceled altogether. This would mean the title remains in the original homeowner’s name. 

Arkansas Foreclosure Laws 

It’s important for homeowners to understand Arkansas foreclosure laws to minimize the risk of walking away from their home too soon and ending up with a zombie foreclosure. The most common method of foreclosure used in the state is non-judicial, which means it doesn’t go through court. Lenders are required to send homeowners a foreclosure notice 10 days before starting the process, as well as record a notice of default and intent to sell. Homeowners are given the opportunity to reinstate a loan before the sale, but redemption after a sale is not available. 

Ramifications of a Zombie Foreclosure 

foreclosure attorneyA zombie foreclosure can create serious legal and financial problems for a homeowner. Since they still own the title, they will continue to be responsible for maintenance, property taxes, Homeowners Association fees, and housing code compliance. Eventually, the local authorities or government may attempt to recover unpaid taxes, fees, and maintenance expenses. 

How to Avoid a Zombie Title 

To avoid acquiring a zombie title, it’s best for homeowners to hire a foreclosure attorney who can help ensure they know the status of their foreclosure proceedings at all times. They should also stay in the home until they’ve received an official notice to move. Then, it’s crucial to follow up on the transfer of title to make sure the property is no longer in their name.

 

If there is a risk of your home falling into foreclosure, it’s important to seek legal counsel right away to find out what your options are. The foreclosure attorneys at Bueker Law Firm can explore different solutions with you and determine if bankruptcy would be the best course of action for you to take. Having served the community in and around Stuttgart, AR for more than 15 years, they have guided numerous clients into debt relief and made it possible for them to regain their financial footing. Call (870) 673-1313 to have a skilled foreclosure attorney review your situation, or visit them online for more information on how they can help. 

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