New York Fights Back Against 'Zombie' Properties (Realtor Magazine)

Properties that sit deteriorating in foreclosure limbo are plaguing New York neighborhoods. New York Attorney General Eric Schneiderman says he plans to introduce legislation to get banks and mortgagees to better maintain the vacant properties.

He wants to double the number of nonprofit land banks that can buy abandoned and foreclosed homes and rehab or demolish them, HousingWire reports.

New York isn’t alone in being haunted by the “zombie property” epidemic. As of mid-2013, 300,000 zombie foreclosures were in neighborhoods across the U.S., according to statistics from RealtyTrac.

Vacant properties where lenders haven’t completed the foreclosure process or taken possession of them yet have been dubbed “zombie properties.”

In New York, zombie properties can be particularly problematic since the foreclosure process can take nearly three years.

Since the properties sit vacant, zombie properties often can become targets of vandals and crime, and potentially negatively impact nearby neighborhood values.

“Every New Yorker deserves to live in a safe and secure community, where the house next door isn’t left to rot,” Schneiderman says.

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