A zombie foreclosure is not a plotline of The Walking Dead. Rather, it’s a term in real estate referring to when homeowners vacate a property too soon after receiving a foreclosure notice. The homeowner assumes the property has already been seized by the bank or lender and they are no longer financially responsible for the property. But this is not the case.
The foreclosure process is not a quick one, and until it’s complete, the homeowner is still financially responsible for all costs, including property taxes and homeowners association (HOA) fees. As a result, the title — known as a zombie title — is still in the homeowner’s name. And the property can come back, as it were, to haunt the original homeowner.
How zombie foreclosures happen
When a bank or lender initiates a foreclosure notice, it’s just that — a notice. It means the foreclosure process has begun