The number of zombie foreclosures, which refer to homes that have been abandoned by homeowners but are yet to be repossessed by banks, hit approximately 8,900 in the fourth quarter. Despite a seemingly high statistic, industry insiders are reassuring the market that this situation does not pose any considerable threat. The term ‘zombie foreclosure’ brings about images of derelict properties absorbing resources and causing urban blight, but according to industry watchdogs, such fear is quite exaggerated.

Foreclosures are a routine part of the property market cycle and while the current number may seem threatening, it does not necessarily denote an impending crisis. Industry experts point out that processes and interventions have been improved and increased over the years, avoiding any substantial damage to the real estate market. Strong regulations and diligent follow-ons ensure that such homes eventually enter the market in favour of new homeowners, thereby preventing any long-term stagnation or adverse influence on housing economy.

Key points:
• About 8,900 homes were classified as ‘zombie foreclosures’ in the fourth quarter.
• Despite a high number, industry experts affirm that these zombie foreclosures pose no significant risk to the real estate market.
• Though foreclosures might look disturbing, they are a standard part of the property market cycle.
• Improved processes and stronger regulations ensure such properties eventually get new owners, thus avoiding any long-lasting negative impacts on the housing market.

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