Americas zombie foreclosures are declining but thousands of abandoned homes still haunt neighborhoods

Thousands of abandoned homes are still haunting neighborhoods across America — even as the nation’s so-called “zombie foreclosure” problem shows signs of easing.These properties, left vacant by homeowners before the foreclosure process is completed, can become eyesores for surrounding communities, with boarded-up windows, overgrown lawns and deteriorating exteriors.The latest figures from real estate data firm ATTOM show that zombie foreclosures account for roughly 3% of homes in the foreclosure process nationwide, down from 3.3% a year earlier.But the problem is far from dead.Some 8,040 properties remain in zombie status across the country, while 29 states recorded quarterly increases in their zombie foreclosure counts.The findings highlight a persistent contradiction in America’s housing market: While buyers struggle with limited inventory and affordability challenges, thousands of residential properties remain empty and tied up in foreclosure proceedings.The problem has also been growing in several states despite the national decline.In Youngstown, Ohio, a former steel-manufacturing hub, with 13% of properties in foreclosure classified as zombies — more than four times the national rate.The city has struggled to bring abandoned properties back into use.

Wisconsin recorded the biggest percentage jump in zombie properties between the third and fourth quarters, climbing 20.9% to 52 homes, according to ATTOM.Maryland followed with a 19.2% increase to 180 properties, while Pennsylvania saw a 17.2% rise to 252.Texas also experienced a 15.7% increase, bringing its total to 192.Other states moved in the opposite direction.Arizona recorded the steepest quarterly decline, with zombie properties plunging 34.9% to 56.

Florida, which still had 2,220 zombie properties, saw its count drop 19.6%, while California registered a 10.4% decrease to 267.Overall, ATTOM identified 269,195 residential properties in the foreclosure process during the fourth quarter, includin...