Greg Taylor SVP, Performance Marketing and Media Buying | realtors.com
Zombie foreclosures are increasing in several U.S. states as homeowners face difficulties in meeting mortgage payments, with interest rates remaining near 7%. According to ATTOM Data Solutions, a company specializing in land and real estate analytics, there are at least 1.4 million vacant residential properties nationwide, which equates to one in every 76 homes. This figure has slightly risen compared to the previous year.
In the first quarter of this year alone, 212,268 homes have entered the foreclosure process. Among these pre-foreclosure properties, 7,094 are classified as zombie foreclosures—homes abandoned by owners after receiving foreclosure notices but before ownership is transferred.
ATTOM's research indicates that one in every 14,668 homes across the country has been vacated due to foreclosure. Realtor.com senior economic research analyst Hannah Jones notes that "affordable locales in the Midwest have seen sustained buyer attention as many home shoppers are priced out of higher-priced markets." She adds that "the rate of foreclosures is relatively low in these areas as homeowners are in a good position to sell for more than they purchased the home for."
Despite this trend, zombie foreclosures continue to affect various regions even if properties do not appear abandoned at first glance.
The report highlights significant annual increases among five states with at least 50 zombie foreclosures during the first quarter of 2025:
1. Missouri: Zombie properties increased by 85%, from 27 to 50.
2. Michigan: Zombie properties rose by 51%, from 55 to 83.
3. South Carolina: Zombie properties grew by 31%, from 74 to 97.
4. Indiana: Zombie properties went up by 28%, from 215 to 276.
5. Kansas: Zombie properties climbed by 26%, from 69 to 87.
Several metropolitan areas also show high numbers of vacant homes in pre-foreclosure stages. The Miami–Fort Lauderdale–West Palm Beach area and New York–Newark–Jersey City both recorded having around 747 vacant properties each during the first quarter. Other areas include Chicago–Naperville–Elgin with about 472 vacant homes; Tampa–St. Petersburg–Clearwater with approximately 324; and Cleveland–Elyria with around 201.
Foreclosure is a legal process allowing lenders to take control over a property when borrowers fail on mortgage payments. A zombie foreclosure occurs when homeowners abandon their property upon receiving a notice but still hold its title until completion of proceedings.
Rob Barber, CEO of ATTOM Data Solutions said, “Zombie foreclosures remain a rare sight across the U.S., making up only a tiny fraction of the nation’s housing stock.” He further explained that "with foreclosure activity continuing to trend downward and home equity staying strong," most neighborhoods avoid facing issues related directly linked towards abandoned houses previously seen during past economic downturns.