The number of zombie foreclosures in the U.S. declined both quarter-over-quarter and year-over-year in the third quarter of 2014, according to RealtyTrac's Q3 2014 Zombie Foreclosure Report released today. Zombie properties, which are residential properties in the process of foreclosure that have been deserted by the owner but are not yet fully foreclosed upon, totaled 117,000 nationwide in the third quarter, a decline of 17 percent from Q2 and 23 percent from the third quarter of 2013.
The number of zombie foreclosures declined year-over-year in 33 states and in 152 out of 212 metropolitan areas with a population of more than 200,000 in the third quarter. The state that saw the biggest year-over-year decline was Missouri, at 73 percent. The metro area with the largest drop in zombie foreclosures from Q3 2013 to Q3 2014 was Portland, Oregon, at 53 percent. Zombie properties accounted for about 18 percent of all active foreclosures in the U.S. in the third quarter of 2014. Most of these zombie properties will likely end up as short sales, foreclosure auction sales, or bank-owned sales.
The Federal Open Market Committee of the Board of Governors of the Federal Reserve System announced on Wednesday that its asset purchase program, known as the QE3 program, will end this month, citing sufficient economic growth. Following months of speculation of the end of the program, Fed made the announcement in its FOMC statement on Wednesday, following the FOMC's seventh of eight meetings this year. The Fed suggested in Wednesday's FOMC statement that U.S. economic activity is expanding at a "moderate pace" since the Committee's last meeting on September 17.