In last week’s REOX member-exclusive webinar, Robert Sambursky, Esq. of Stein, Wiener & Roth, shared nearly 25 years of foreclosure and REO experience to help agents, brokers, and servicers better understand today’s legal risks. The discussion covered everything from foreclosure timelines to the growing issue of zombie properties and the complexities of eviction law.

Judicial vs. Non-Judicial Foreclosures

Sambursky highlighted how dramatically foreclosure timelines can differ across the country. Non-judicial states such as Minnesota can see a property foreclosed in as little as 162 days, while judicial states like New York may stretch beyond 1,900 days—sometimes over five years. While expedited processes exist for vacant and abandoned homes, court backlogs and lengthy statutes continue to challenge servicers and investors.

Market Trends: Vacancies & Zombie Properties

Vacant homes now represent 1.3% of U.S. housing stock, with an estimated 7,500 “zombie properties” among pending foreclosures. These abandoned properties not only weigh on communities but also complicate timelines for resolution. Rising foreclosure filings, fueled by affordability challenges, high interest rates, and inflationary pressures, suggest the trend may accelerate into 2026.

The Role of REO Agents

Sambursky emphasized that agents are essential partners in the legal process. Routine property inspections, occupant contact (including “cash-for-keys” arrangements), and thorough FOIL searches can surface critical information early—allowing attorneys to resolve zoning issues, missing certificates, or violations before they derail transactions. Accurate and timely reporting remains one of the most effective tools for reducing litigation risk.

Evictions, Tenants, & Squatters

Evictions in foreclosure are not one-size-fits-all. Determining whether the occupant is a former owner, tenant, or squatter dictates legal obligations and timelines. Under the Protecting Tenants at Foreclosure Act, renters are entitled to 90 days’ notice, making it critical to confirm lease status at the outset.

Squatters, particularly in states like New York, remain a rising concern. While past laws allowed them to gain tenant rights after 30 days, recent legislation now excludes squatters from tenant definitions—helping streamline removals, though legal action is still required.

The Bottom Line

From prolonged timelines to vacant homes and evolving eviction laws, today’s foreclosure landscape is fraught with legal landmines. But Sambursky underscored one consistent solution: early information and open communication. By staying vigilant, gathering accurate property data, and aligning closely with legal partners, REO professionals can mitigate risk and move assets more efficiently through the foreclosure pipeline.