2026 Q3 Foreclosure Report: NYC Foreclosure Activity Slows to 4-Year Low, Fueled by Queens & Brooklyn Contractions

Key Takeaways:

• NYC foreclosures drop 23% year-over-year (Y-o-Y), totaling 319 first-time cases in Q3 2026
• Citywide lis pendens rise 10% Y-o-Y to 1,806 filings, fueled by Queens and Brooklyn increases
• Manhattan and Brooklyn caseloads halved Y-o-Y with Brooklyn trailing the Bronx for the third consecutive quarter
• Queens maintains lead, but its 106 first-time filings nearly set a new post-pandemic low
• Bronx grabs NYC’s foreclosure hotspot with 13 new filings concentrated in zip 10473
• Staten Island claims NYC’s priciest upcoming auction with a $1.66 million lien hitting the block in Q4
• Manhattan was the only borough with significant pre-foreclosure decreases, dropping 34% Y-o-Y
• Single family foreclosures continue to drive NYC activity with 35% of cases

NYC Overview

Behind 5% Citywide Decrease, the Five Boroughs Chart Disparate Paths

Q3 2026 was the New York City foreclosure market’s slowest quarter in nearly four years, totaling 319 first-time filings. That’s the lowest figure since Q4 2022 and marked a 23% Y-o-Y contraction. At the borough level, the city pulled in two opposite directions with significant downshifts in Manhattan, Brooklyn, and Queens, whereas the Bronx and Staten Island rose.

Beyond opposing year-over-year growth trends, inter-borough dynamics were also abnormal with the Bronx’s caseload (89) second only to Queens (106). Brooklyn (57) was a distant third. Q2 had the same dynamic, marking the first time in nearly a decade that this pattern was seen in the city, having been more typical of the 2016-2017 NYC foreclosure market.

Meanwhile, Manhattan (31) remained the city’s slowest foreclosure market. In fact, in the last four years, only the second quarter of this year was slower. Staten Island (35) was close behind, though, returning to more muted activity levels after the peaks recorded earlier this year.

NYC pre-foreclosures had a more balanced arc, totaling 1,806 lis pendens for a 10% Y-o-Y increase. In this case, Staten Island (175) and the Bronx (256) were virtually unchanged year-over-year with the city’s pre-foreclosure sector driven by Queens and Brooklyn. Specifically, Manhattan’s pre-foreclosures (83) decreased by one-third, but that contraction was cancelled out by double-digit gains in Brooklyn (586) and Queens (697).

NYC Asset Types

Single Family Homes Remain Most Foreclosed Asset Type

Single family homes (112) remained the dominant asset type driving NYC foreclosures, accounting for 35% of first-time filings. This was in line with the last four quarters, which saw single family take over as the leading residential asset type after several years dominated by two-family foreclosures. That said, two-family homes (99) narrowed the gap in Q3, accounting for 31% of the city’s caseload.

Meanwhile, condos (37) and co-ops (71) also grew more balanced as the number of co-op foreclosures dropped. In this case, co-op foreclosures decreased by 27% compared to Q2, while condo foreclosures were virtually unchanged — the 3% quarter-over-quarter increase translated to one additional case.

Manhattan

Manhattan Foreclosure Activity Continues 2026 Slowdown

Once again, Manhattan was the city’s slowest foreclosure market — a position it held throughout 2026, as well as in the immediate aftermath of the lifting of the foreclosure moratorium. Although the borough’s 31 first-time filings represented a slight increase from Q2’s four-year low, Manhattan foreclosures were down 47% compared to the same period last year.

Manhattan’s weak foreclosure activity was also reflected in how cases clustered: The highest concentration of new foreclosures was in zip 10025 — covering parts of Manhattan Valley, Morningside Heights and the Upper West Side — with just four cases.

Manhattan pre-foreclosures also matched the downward arc of foreclosure filings, contracting 34% Y-o-Y for a total of 83 lis pendens. This made Manhattan the only borough with a significant slowdown in pre-foreclosure activity. That figure also proved that the 142 lis pendens filed in Q2 may have represented a post-moratorium record — but that sudden surge was an exception, rather than a sign of rising pre-foreclosures. 

Brooklyn

Brooklyn Foreclosures Halved Y-o-Y to Just 57 Cases

Similarly to Manhattan, the Brooklyn foreclosure market also continued with unusually low levels of activity — a trend it has sustained throughout 2026 with Q2 as the slowest quarter since mid-2022. Q3 was nearly as slow, logging just one additional case for a total of 57 first-time foreclosures. Compared to Q3 2025, that represented a 50% drop, contributing significantly to the citywide slowdown.

And, just like Manhattan, this sustained slowdown was also reflected in foreclosure clusters as only one zip code had more than four cases: Zip 11234 clustered five new filings in the Bergen Beach, Mill Basin, Old Mill Basin, Georgetown, Flatlands and Marine Park area.

Furthermore, Brooklyn pre-foreclosures also played a significant role in the citywide uptick in lis pendens filings. More precisely, Brooklyn totaled 586 pre-foreclosure filings, or 14% more than during the same period last year. That year-over-year increase fully cancelled out Manhattan’s pre-foreclosure slowdown and still raised citywide numbers.

Queens

Queens Contracts to Just Over 100 Cases, Hits 4-Year Low

The cooling Queens foreclosure market, down 36% Y-o-Y, strongly influenced the citywide foreclosure slowdown of Q3. Here, that resulted in 106 first-time filings to match Q4 2024 and nearly set a new post-moratorium record low. Moreover, Queens only had fewer foreclosures in Q1 2022 — the quarter during which the moratorium was actually lifted.

Unlike Brooklyn, which kicked off 2026 below its usual post-pandemic activity, Queens started 2026 strong with Q1 finishing as one of the three most active post-pandemic quarters. But, that momentum dissipated by Q3. Nevertheless, even with a drastic slowdown in new foreclosures, zip 11412 in St. Albans still stood out, clustering 11 first-time filings for 10% of the borough’s Q3 total.

Conversely, Queens pre-foreclosures trended up, rising 26% Y-o-Y to 697 lis pendens filings. With Staten Island and Bronx pre-foreclosures mostly stationary and Manhattan lis pendens contracting, it was Queens and Brooklyn that drove NYC’s 10% Y-o-Y increase.

The Bronx

Bronx More Active Than Brooklyn for 3rd Consecutive Quarter

The Bronx foreclosure market remained one of the standout markets of the city, operating far above its more typical post-moratorium levels. In fact, the borough claimed twice as many foreclosures in Q3 2026 than during the same period last year, with its 89 first-time filings representing a 107% Y-o-Y increase.

Although that figure was below the 109-case, seven-year peak of Q2, it was still the borough’s second-most-active post-pandemic quarter. Additionally, this marked the third consecutive quarter of Bronx foreclosures outpacing Brooklyn. Even so, Q3 Bronx pre-foreclosures were nearly flat year-over-year, totaling 265 lis pendens, four fewer than during the same period last year.

The Bronx’s elevated foreclosure activity was also evident in how new cases were dispersed across the borough with one zip code totaling 13 first-time foreclosures. In fact, zip 10473 in the Clason Point, Castle Hill, Soundview and Unionport area was NYC’s Q3 foreclosure hotspot.

On top of that, the Bronx was also the setting for the most expensive lien to hit the auction block in Q3: A 1,120-square-foot, two-family conversion with a $1.1 million lien, that went under the hammer in August, but didn’t sell, reverting to real estate-owned.

Top 5 NYC Residential Auctions by Lien Amount: Q3 2026

Rank	Borough	Address	Lien Amount	Auction Date	REO
1	The Bronx	2558 Morgan Ave.	$1,095,973	8/3/2026	Yes
2	Queens	20-17 43rd St.	$969,793	7/10/2026	Yes
3	Brooklyn	1483 E 37th St.	$814,148	8/25/2026	Yes
4	Queens	34-37 111th St.	$756,492	8/13/2026	No
5	The Bronx	3583 Fish Ave.	$698,137	8/6/2026	Yes

Staten Island

Staten Island Originates Priciest Residential Auction Scheduled for Q4

Like the Bronx, Staten Island pre-foreclosures were virtually unchanged year-over-year, totaling 175 lis pendens (one more than during the same period last year). However, the Staten Island foreclosure market totaled 36 first-time filings in Q3 to log a 13% Y-o-Y increase, or four additional new cases. That marked a return to figures more typical for the second half of 2025 and below the elevated activity of early 2026.

Still, zip code 11314 in Mid-Island concentrated seven new foreclosure cases, outpacing the leading foreclosure clusters of Brooklyn and Manhattan. Beyond Mid-Island’s cluster, Todt Hill also stood out — not for an unusually high number of foreclosures, but for one specific case: A 3,181-square-foot, two-story detached home on a 33,000-square-foot lot that currently stands as the most expensive foreclosure scheduled for Q4. It’s set to hit the block in mid-November with a $1.66 million lien.

Top 5 Upcoming NYC Residential Auctions By Lien Amount: Q4 2026

Rank	Borough	Address	Lien Amount	Auction Date	Occurrence
1	Staten Island	231 Douglas Rd.	$1,665,531	11/12/2026	first-time
2	Brooklyn	769 E 19th St.	$1,640,192	11/5/2026	rescheduled
3	Queens	249-18 139th Ave.	$1,628,780	11/6/2026	rescheduled
4	Queens	97-48 Corona Ave.	$1,415,742	10/30/2026	rescheduled
5	Manhattan	170 E 79th St. #11a-12a	$1,336,627	10/27/2026	first-time

Data Snapshot: All Boroughs

Q3 2026 NYC Foreclosures & Pre-Foreclosures by Borough

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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 2026, 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 2026.

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FAQs

1. Are foreclosure filings increasing in NYC? 

No, in Q3 2026, NYC totaled 319 first-time foreclosure filings, which is down 23% year-over-year (the lowest figure since Q4 2022).

2. Which borough had the most foreclosures?

Queens was the most active foreclosure market with 106 first-time filings in Q3 2026, marking a 36% decrease compared to Q3 2025.

3. Which borough had the fewest foreclosures?

Manhattan had the slowest foreclosure market with 31 first-time filings for a 47% decrease compared to Q3 2025.

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