Slightly more than 1.5 million (or 1.5 percent of) residential properties in the U.S. are vacant, according to ATTOM Data Solutions’ 2020 Vacant Property and Zombie Foreclosure Report.
The report found 258,000 homes are in the process of foreclosure, with about 7,650, or 3 percent, sitting empty as “zombie foreclosures.” ATTOM said the percentage of zombie foreclosure properties is down slightly from 3.1 percent in the first quarter of 2020.
“The foreclosure and zombie-property picture hasn’t changed much in the second quarter of this year as most lenders are barred from taking action against homeowners who are falling behind on their mortgages,” ATTOM Chief Product Officer Todd Teta said in a release. “We are in a holding pattern across the country as long as the moratorium continues.
“At some point, that will have to be lifted, so that banks can make their own decisions about whether to continue delaying foreclosures while the economy recovers,” Teta said. “When that will happen is unknown, but that’s the point when we will see if foreclosure activity will remain at very low levels or rise.”
According to the report, the number of properties in the process of foreclosure in the second quarter was down 8.8 percent from the first quarter. The zombie properties represent a mere one of every 13,000 homes.
The report said states where the percentage of zombie foreclosures are above the national average of 3 percent include Ohio (6.7 percent); New Mexico (5.5 percent); Indiana (4.8 percent); Illinois (4.7 percent); and Iowa (4.5 percent). The states with the lowest rates of zombie foreclosures (all less than 1.3 percent) were South Dakota, Idaho, New Hampshire, Utah, New Jersey, Connecticut and Colorado.
ATTOM said New York has the highest number of zombie properties (2,158); followed by Florida (1,136); Ohio (877); Illinois (868); and New Jersey (302).
The metropolitan areas with the highest percentage of zombie foreclosures were Peoria, Ill. (12.9 percent); Cleveland (11 percent); Syracuse, N.Y. (8.9 percent); St. Louis (7.8 percent) and Honolulu, Hawaii (7.8 percent).