Manhattan is no stranger to big-ticket foreclosure auctions, with properties once valued above the $60 million mark ending up on the foreclosure block. But aside from the inevitable media spectacle they give rise to, very few of these properties are of interest to home buyers and investors as their lien amount generally exceeds their valuation.
Archives For New York Foreclosures
Articles on New York City foreclosures. Read foreclosure and pre-foreclosure stats, insights into the foreclosure process and interesting auctions.
NYC foreclosures recorded a new low in the first quarter of this year, according to our quarterly report. However, pre-foreclosures continued their upward trend, reaching a two-year high.
Down a significant 29% year over year (146 compared to 206), and 33% over Q4 2012, the number of new NYC foreclosures is now the lowest since the beginning of the real estate meltdown.
Take a look at the chart below to see the trend in foreclosures for the past 8 quarters: Continue Reading…
Federal assistance is on the way for distressed NYC homeowners having an FHA-insured mortgage on their homes.
The U.S. Department of Housing and Urban Development has granted a 90-day foreclosure moratorium to NYC borrowers of FHA-insured loans as a result of the damage caused by Hurricane Sandy. This means that foreclosure activity involving thousands of distressed homes across New York City, Nassau and Suffolk counties will stop for the next 90 days. Homeowners can use this time to assess their debt situation and find payment alternatives.
First-time foreclosures across New York City continue to stay at a low level in Q3 2012, but pre-foreclosures, or lis pendens, have been up 8 quarters in a row.
After a moderate increase last quarter, this quarter 228 foreclosure auctions were scheduled in NYC, down 9% from Q2 2012 (251) but up 10% from the same quarter in 2011 (207). Only Manhattan and Staten Island saw more significant increases in scheduled foreclosure auctions.
Settling a foreclosure case in the NYC courts can take a surprisingly long time, sometimes even more than 6 years. A PropertyShark in-house analysis based on our foreclosure data indicates that certain NYC homes in distress have had their auction postponed more than 20 times.
A postponed foreclosure auction can give homeowners more time to find solutions for paying off their outstanding mortgages or selling their homes. While some use the time to bring mortgage payments up to date, according to an article in CNN Money, others may continue to live in their houses without making mortgage payments, sometimes even for years. If people in the second group were to pay rent in, let’s say, Brooklyn NY, they would have to pay more than an average of $2,500/month for a two-bedroom apartment. In four years, the amount could add up to around $120,000 in rent savings.
The Mall at The Source in Westbury, NY is scheduled for auction at the end of this month with a lien amount of almost $142 million, PropertyShark data indicates.
The mall defaulted on its $124 million mortgage in 2009 when several of its major tenants — Fortunoff, Circuit City, and Steve and Barry’s — closed their businesses. In May 2012 it saw its market value cut down to $51 million, almost half of the $90 million value it had in 2011, an article in LIBN points out. The mortgage is part of a pool of commercial mortgage loans, CMAT 1999-C1, whose rating was not affected by the transfer of the loan to special servicer LNR Partners in 2009.
The number of commercial foreclosure auctions in NYC remains very high (116) in the second quarter of 2012, second only to Q1 2012 (117) within the last four years.
After seeing a 22% increase over the first quarter of 2012, the number of new residential foreclosure auctions scheduled in New York City (251) seems to be on the upswing again in Q2 2012. This is also the highest number since Q2 2011.
A PropertyShark in-house report shows that 2,042 residential properties in all NYC boroughs had pre-foreclosure proceedings filed against them in Q2 2012, the second highest number since the beginning of 2011. This comes after the first quarter of 2012 saw condo lis pendens setting record numbers since the second quarter of 2010 (91 lis pendens filed in New York City).