The number of vacant and abandoned properties that are in foreclosure has fallen in the second quarter, according to a RealtyTrac report.
The number of so-called zombie foreclosures fell 10% to 127,021 nationwide, as of May 28, compared to a year earlier, RealtyTrac said. Zombie foreclosures represented about 20% of all foreclosures in the second quarter.
Even so, zombie foreclosures rose in about half of 183 metropolitan areas examined in the study, including New York, Los Angeles, Houston, Philadelphia and Boston. Miami, on the other hand, had the biggest decline in zombie foreclosures.
Zombie foreclosures are created when a mortgage servicer starts the foreclosure process, but then fails to complete it, leaving borrowers on the hook for taxes and maintenance, even though they may have already moved out.