Zombie foreclosure is driving me crazy!

[Tony S.]

So I have known about a particular property for a while now. It is located about 100 miles away from me in another city, and I've been driving by it about once a week. 

All of my research goes to show that this property is a "Zombie foreclosure". It is a nice property and I'm dying to make a deal on it. 

I actually found the previous owner's phone number online and spoke to him a while back. He mentioned that he walked away from the house when the foreclosure started about two years ago. According to the county's records, I see his mortgages and the deed when he purchased the house, but there is nothing indicating a foreclosure ever started. 

The taxes are still in the previous owner's name, and haven't been paid in a few years. In September, the town came out to the property and did some work and proceeded to put a lien on the property, which is also showing the owner's name, not a bank. 

The only thing I'm not seeing is any sort of "release of lien" from a bank or financial institution. At the same time, if the property hasn't been maintained and taxes haven't been paid, did the bank already release it? 

I'm lost and have no idea how to go about this at all?

[Wayne Brooks]

Nothing has been released.  Either the bank has started foreclosure, or it's slipped thru the cracks and they haven't.  If the owner is cooperative, you could try a short sale, with an experienced agent.