2025 Q3 Foreclosure Report: Manhattan Heats Up to 10-Year High, Queens Drives Citywide Increase

Key Takeaways:

• NYC foreclosures rise 16% Y-o-Y to 412 first-time filings in Q3 2025
• Queens heats up 33% Y-o-Y, remains city’s most active market with 165 foreclosures
• Manhattan closes most active quarter since Q1 2016 with 59 first-time filings
• Staten Island continues as NYC’s slowest foreclosure market as activity drops to just 32 new cases
• With 17 first-time filings, zip 11413 in the Brookville, Laurelton, Springfield Gardens and Rochdale area is NYC’s foreclosure hotspot
• NYC totals 21 commercial foreclosures with more than half in Brooklyn
• Citywide pre-foreclosures contract 10% Y-o-Y to 1,629, fueled by contractions in Brooklyn & Queens
• The Bronx hits six-year peak for pre-foreclosures with 266 lis pendens
• Three Central Midtown condos head to auction with $11 million lien

NYC Overview

Citywide Foreclosure Incidences Maintain Upward Trend

The NYC foreclosure market showed signs of increasing activity in the third quarter, totaling 412 first-time foreclosures — 16% more than during the same time last year. Most of this growth was driven by the rapid increase in Queens foreclosures, which rose 33% year-over-year (Y-o-Y) to 165 first-time filings.

At the same time, Manhattan foreclosures reached a nearly 10-year high: Its 59 cases represented the most active quarter that the borough has seen since at least Q1 2016. Brooklyn and Bronx cases also rose, although their increases were in single-digit territory. Meanwhile, Staten Island continued to go against citywide trends with the number of foreclosures here decreasing by nearly one-fifth.

Notably, pre-foreclosures presented a more complex picture: Although citywide lis pendens were down 10% Y-o-Y in Q3 2025, the 1,629 pre-foreclosures filed across the city also marked one of the most active post-pandemic, post-moratorium quarters.

Manhattan

With 59 New Foreclosures, Manhattan Hits 10-Year High

Manhattan’s foreclosure sector continued to rise to unprecedented new heights, totaling 59 first-time filings, the highest number in nearly a decade. Notably, the last two years have posted some of the absolute highest foreclosure incidences in Manhattan, and Q3 2025 closed stronger than any before after its caseload surged 40% Y-o-Y. Of these cases, five were clustered in zip code 10011, thereby designating Manhattan’s foreclosure center as this area of Chelsea, the West Village, Greenwich Village and the Flatiron District.

Pre-foreclosure activity was also strong in this area, totaling 124 lis pendens filings between July and September, up 59% Y-o-Y. In fact, this was one of the most active quarters for Manhattan pre-foreclosures since mid-2018: Only Q4 2024 (with 125 lis pendens) and Q4 2022 (with 126 pre-foreclosures) were slightly stronger.

Looking ahead, Manhattan also stands out in terms of upcoming auctions as it’s supplying the three highest residential liens. Chief among these is an $11.35 million lien attached to a multi-unit foreclosure at the Museum Tower in Central Midtown. It includes two 2,248-square-foot units and a 1,204-square-foot unit on the 29^th and 30^th floors.

Top 5 Upcoming Residential Auctions by Lien Amount in Q4 2025

Rank	Borough	Address	Lien Ammount	Occurrence	Auction Date
1	Manhattan	15 W 53rd St. #29A	$11,351,009	first-time	11/12/2025
		15 W 53rd St. #29F		first-time	11/12/2025
		15 W 53rd St. #30A		first-time	11/12/2025
2	Manhattan	421 Hudson St. #805/6	$7,584,837	rescheduled	11/12/2025
3	Manhattan	477 W 142nd St.	$2,491,098	first-time	10/29/2025
4	Manhattan	160 W 66th St #46G	$2,290,728	rescheduled	11/12/2025
5	Queens	119-52 Merrill St.	$2,139,615	rescheduled	10/31/2025

Queens

NYC’s Foreclosure Hotspot: 17 New Filings in Southeastern Queens Zip

In Q3, Queens foreclosures were on the rise, marking a significant 33% Y-o-Y jump. However, that increase was slightly misleading because it actually brought the Queens market closer in line with more typical levels of foreclosures activity observed in the last two years.

That’s also after Q3 2024 reached a two-year low of just 124 first-time filings, as opposed to the 165 filed between July and September of this year. Of these, 17 new cases were concentrated in zip code 11413. As a result, the Southeastern Queens zip covering neighborhoods like Laurelton, Rosedale and Springfield Gardens became NYC’s Q3 foreclosure hotspot.

At the same time, pre-foreclosures trended down 21% Y-o-Y, although, here again, figures for changes in activity were somewhat skewed. Specifically, the third quarter of last year represented a post-pandemic high as 703 lis pendens were filed — a level of pre-foreclosure activity that had not been observed in Queens since Q3 2019. For comparison, the 552 lis pendens filed in the third quarter of this year were more typical of the pre-foreclosure activity seen since early 2024.

Brooklyn

Claiming More Than Half of Cases, Brooklyn Continues to Drive Commercial Foreclosures

Residential foreclosures in Brooklyn also rose, albeit at a much more modest 4% Y-o-Y, to reach 113 first-time filings. Of these, 16 new cases were clustered in zip 11229 — the borough’s third-quarter foreclosure hotspot that covers southern Brooklyn neighborhoods, like Sheepshead Bay, Gerritsen Beach, Homecrest and Madison and Marine Park. And, in terms of pre-foreclosures, Brooklyn was nearly in lockstep with Queens, logging 20% fewer cases compared to the same period last year for a total of 513 lis pendens.

Meanwhile, when it came to commercial foreclosures, Brooklyn kept the main stage as 12 of the city’s 21 commercial cases were filed in the borough. In addition, four of the five highest commercial liens that hit the auction block in Q3 were attached to Brooklyn properties. These included an $8.1 million lien tied to a 13-unit apartment building in Crown Heights, as well as a $6.1 million lien tied to an eight-unit apartment building in Bushwick.

Top 5 Commercial Auctions by Lien Amount in Q3 2025

Rank	Borough	Address	Lien Ammount	Auction Date	REO
1	Brooklyn	525 St. Marks Ave.	$8,114,977	7/10/2025	Yes
2	Brooklyn	537 Knickerbocker Ave.	$6,063,243	8/7/2025	Yes
3	Brooklyn	446 Franklin Ave.	$2,148,783	7/17/2025	Yes
4	Brooklyn	399 Sterling Pl.	$1,843,835	7/10/2025	Yes
5	Queens	109-08 Northern Blvd.	$1,758,218	7/18/2025	Yes

The Bronx

Pre-Foreclosures Hit 6-Year High in The Bronx

The Bronx stayed in line with citywide foreclosure trends: First-time filings inched up 8% Y-o-Y here, although that translated to an increase of just three new cases. Of the 43 first-time foreclosures, seven were located in the 10473 southeastern Bronx zip code. As a result, the area covering parts of Castle Hill, Clason Point, Soundview and Harding Park had the borough’s highest concentration of foreclosures.

Pre-foreclosures were also on the rise in the borough, and the Bronx saw 21% more lis pendens than during the same period last year. In fact, the 266 pre-foreclosures filed in Q3 marked a six-year high for the borough.

Staten Island

Down to 32 First-Time Filings, Staten Island Remains City’s Slowest Foreclosure Market

Staten Island continued to go against the grain and was the only borough where first-time foreclosures actually decreased, declining 18% Y-o-Y to 32 new foreclosures. This further entrenched the fifth borough as the slowest foreclosure market in NYC. That said, Staten Island was not the slowest for pre-foreclosure activity. Instead, Manhattan claimed that title with 124 lis pendens, while Staten Island totaled 174 lis pendens after a 9% Y-o-Y increase.

Meanwhile, the borough’s highest concentration of foreclosures was observed around the East and North Shore in zip 10304, which concentrated seven zips in an area including parts of Grasmere, Old Town, Concorde, Park Hill, Rosebank, Clifton and Stapleton Height.

Data Snapshot: All Boroughs

Q3 2025 NYC Foreclosures & Pre-Foreclosures by Borough

Methodology

Having tracked foreclosure listings for more than a decade, PropertyShark is the only service in New York that guarantees 100% coverage of the local foreclosure market. Because auctions are frequently postponed and/or rescheduled, the statistics referenced in this report include only first-time foreclosures in order to avoid over-reporting the number of distressed properties in the city.

Separately, we also report on lis pendens (pre-foreclosure) filings — legal notices that mark the beginning of the foreclosure process.

Pre-foreclosure data refers to unique properties that had at least one lis pendens filing in Q3 2025, which may be a first-time filing or a refiling. The same building class restrictions apply, excluding co-ops. If more than three units were referenced on the same lis pendens filing, they were excluded in order to avoid accounting for entire buildings.

This report focuses exclusively on residential properties (single and two-family homes; condos; and co-op units) that were scheduled for auction for the first time in Q3 2025.

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FAQs

1. Did foreclosure filings increase in NYC in Q3 2025? 

Yes. In Q3 2025, NYC saw 412 first-time foreclosure filings, up 16% year-over-year, indicating a noticeable rise in distressed property activity.

2. Which borough had the most foreclosures in Q3 2025?

Queens was the most active foreclosure market with 165 first-time filings in Q3 2025, marking a 33% increase compared to the same period last year.

3. Which borough had the fewest foreclosures in Q3 2025?

Staten Island remained the slowest foreclosure market in Q3 2025, with just 32 first-time filings, showing a decline compared to the prior year.

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