NYC foreclosures recorded a sharp fall as a consequence of the bank moratorium, making 2011 the year with the lowest number of foreclosures in the last seven years. The 996 first-time foreclosures recorded in 2011 are down 61% compared to 2010 (2,579) and down 74% from the peak recorded in 2008 (3,874).

“The impressive drop in foreclosures merely represents a delaying of the inevitable. Thousands of homeowners are behind on their mortgage payments or have stopped making them altogether.” said PropertyShark founder Matthew Haines. “I expect that thousands of home foreclosures that are currently delayed will eventually make their way through the system. “

In Q4 2011, the number of new foreclosures increased slightly by 7% from the previous quarter and was down 54% compared to Q4 2010.

Manhattan was the only borough recording a year-over-year increase. The 193 first-time foreclosures recorded in 2011 are up 28% compared to the value in 2011 (151). In Q4 2011 there were 37 first-time foreclosures in Manhattan, 32% more than in Q4 2010 (28).

Although it continues to comprise 40% of the NYC foreclosure activity, Queens (89) recorded a significant 63%  Y-o-Y decrease while Brooklyn foreclosures decreased 58% from 91 in Q4 2010 to 38 in Q4 2011.

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