Zombie Foreclosure Rate Hovers at Lowest Level Since 2021, ATTOM Finds

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ATTOM, Irvine, Calif., released its third-quarter 2024 Vacant Property and Zombie Foreclosure Report, showing that of the residential properties currently in the process of foreclosure, just 7,007 sit vacant as “zombie foreclosures.”

Zombie foreclosures are defined as pre-foreclosure properties abandoned by their owners.

That means that one in 14,776 homes in the U.S. is a zombie home, well under the one in 11,565 marked at this time last year and close to flat from last quarter. It’s staying at the lowest level since early 2021, ATTOM noted.

“Zombie foreclosures continue to be a mere blip on the radar screen–one of many measures of the overall strength of the U.S. housing market. After some worries about a rise in abandoned homes following the end of the COVID-era foreclosure clampdown, they remain an anomaly throughout most of the country,” said Rob Barber, CEO for ATTOM. “One significant factor is the historically high levels of home equity. This provides homeowners who may be struggling with their mortgage payments a strong incentive to negotiate new payment plans, which in turn reduces the number of foreclosures. As a result, fewer owners are simply walking away from their properties like so many did after the Great Recession of the late 2000s.”

Overall, ATTOM found that 1.4 million residential properties–or 1.3% of homes–are vacant.

And, there are 222,934 residential properties in the process of foreclosure, down 6% from the second quarter and down 29.3% year-over-year.

The vacancy rate for all residential properties in the U.S. has been flat for a couple years, hovering around 1.3%.