Number of abandoned foreclosure properties drops in latest U.S. housing data

The number of abandoned residential properties currently undergoing foreclosure in the U.S. declined to 3% in the most recent quarter, down from 3.3% during the same period last year, according to a report by real estate analytics firm ATTOM. The data identified 8,040 such properties out of 269,195 ongoing foreclosure proceedings.

So-called "zombie" properties occur when homeowners vacate a property after receiving a notice of default, often operating under the mistaken belief that the bank has already assumed ownership. Because the legal foreclosure process can be delayed or dismissed, the original owners remain on the title while the property sits vacant and unmaintained, often contributing to local property depreciation.

While the national trend shows improvement, the report highlights significant regional variance. The number of zombie foreclosures increased in 29 states during the last quarter, with notable spikes in Wisconsin, Maryland, Pennsylvania, Texas, and North Carolina. Baltimore and Indianapolis were identified as areas with particularly high rates of abandonment.

ATTOM CEO Rob Barber noted that vacant and abandoned homes continue to represent a small share of the national housing stock. Analysts suggest that while these properties pose localized neighborhood issues, broader market factors, such as sustained high mortgage rates, remain the primary drivers currently affecting the U.S. housing market.