A zombie title is a unique and disconcerting type of real estate disaster for homeowners. It is an undesirable type of title that remains with the homeowner whenever a foreclosure is dismissed but the homeowner is unaware of the dismissal. This can be common in low-density rural areas, where financial institutions may be spread out and hard to communicate with.

The guilty parties in such a case are typically the lenders. Lenders may find themselves unable or unwilling to take title to a foreclosed property due to the costs arising from unpaid taxes, liens, and other penalties that may be attached to the property. As a result, they may simply walk away from the proceedings and never contact the homeowner involved.

While such an event is far from pleasant, it often goes unnoticed until the homeowner attempts to sell the property. At this point, potential buyers often discover they are legally blocked from purchasing the home until the zombie title issue is resolved. This can include costly court fees and other legal fees.

The occurrence of a zombie title is a good reminder to stay vigilant regarding any type of real estate loan and proceedings that could affect it. Communication with the lender is key, and a homeowner under attack by the zombie title should reach out to their lender as soon as possible to try and resolve the issue. In many cases, the lender will be willing to provide them with the title or other paperwork that needs to be completed to finally move on.

Overall, zombie titles are one of the worst things a homeowner can face. Understanding the underlying issues and having a plan for resolution can help avoid this situation and open up a path to a successful conclusion.