Last week I told you about “The Coming Curse of Zombie Foreclosures.”
I described how folks – who thought they were foreclosed on – are suddenly finding out they are actually still on the hook for mortgage payments, taxes, and all kinds of maintenance on abandoned homes.
What I didn’t tell you is that the nation’s largest mortgage-issuing bank – and the most profitable bank in 2013 – may have been bitten itself by the very zombie foreclosures it breeds.
And now it could be a dead bank walking…
If you think you’ve heard the last about foreclosures, think again.
There are a ton of them in the pipeline. Approximately 740,000 homes are currently somewhere in the foreclosure process.
In addition, banks own another 676,000 homes they’ve retained and not yet listed for sale, according to RealtyTrac.
And here’s the scary part…
More than 22% of those 676,000 homes (about 152,000 of them) are either vacant or abandoned, and neither banks nor servicers have taken title.
So why is this so worrisome? Let me show you…