Three Out of Four Gorilla Buyes are Zombies
Eugene, Ore. – Gorilla Capital, the leader in buying, renovating and selling distressed homes will include a quarterly Zombie Home Index in its public release of Oregon foreclosure filing information.
“Zombie Homes are abandoned, distressed homes that have become an eye sore in a neighborhood,” said John Helmick, president of Gorilla Capital. “The majority of foreclosures we evaluate have been vacated by the owner and then not taken care of by the lender for months, if not years, creating a nuisance, and pulling property values down across communities. Lenders are prevented by Oregon statutes from taking prompt action on these abandoned homes, and must go through the same lengthy process as homes that are not abandoned. Other States have statutes allowing a solution to Zombie homes by having a more streamlined path to get these homes into the hands of the investors or community organizations that will renovate and bring these homes back to life.
In Q1 and Q2 of 2014, Zombie Homes have comprised 73% and 85% of the houses Gorilla Capital has purchased in Oregon compared to 85% and 92% in 2013. Year to date 79% of the houses purchased by Gorilla Capital in Oregon have been Zombie Homes as compared to 89% in 2013 during the same time period.
In 2013 and 2014, Zombie Homes have comprised 83% of the houses Gorilla Capital has purchased in Oregon compared to the 50% to 55% throughout 2011 and 2012.
Gorilla breathes life into Zombies with a complete renovation of the interior and exterior of the house before selling it. Helmick says Gorilla helps neighborhood property values and communities by converting Zombie Homes to attractive family houses that are up to the standards of the neighborhood.
Oftentimes, a home morphs into a Zombie when the owner gets notice the house is going into foreclosure. The owner moves out and then due to the lengthy foreclosure process, the home may not be foreclosed and sold until several years later. In the meantime, the owner moves, the house is vacant for an indefinite period of time and consequently it falls into disrepair, damaging its value as well as the property values of the houses throughout the neighborhood.
“Gorilla believes it is important for buyers to know Zombie Homes are a product of an over worked foreclosure system that needs improvement, not necessarily the home owner,” Helmick said. “If you are in the real estate market, be careful about buying a home in a neighborhood populated by other Zombies, but in the meantime Gorilla will continue to chase Zombies so they can again come alive as family homes, adding vitality back to a neighborhood.”
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