Although foreclosure rates continue to decline throughout the United States, this is not the case in New York City. In fact, it has widely been reported that the volume of foreclosures in 2017 was the highest since 2009 – the outset of the “great recession.” Moreover, that trend appears to be continuing this year. Whether you are a lender looking to foreclose on a property, or a homeowner in need of a foreclosure defense strategy, having the advice of an experienced real estate litigation attorney is invaluable.
New York Foreclosure Statistics
There were 3,306 foreclosures throughout New York City in 2017. This represents a 58 percent increase over the previous year, and the third largest number of foreclosures over the last ten years. Moreover, foreclosures have been accelerating over the last two years, nearly doubling since 2015 when there were 1,762 new foreclosure actions.
The largest increase was in the borough of Staten Island in which there were 428 new foreclosures on the docket in 2017, a 134 percent spike year-over-year. Additionally, Queens and the Bronx saw 40 and 44 percent increases, respectively. In 2017, there were 1,260 auctions scheduled in Queens. The only “bright spot” was Manhattan where foreclosure rates remained flat in 2017 – even though the largest foreclosure in city history occurred in Manhattan last year.
The spike in foreclosures in 2017 comes after a dramatic decline between 2011 and 2012. During that the period, the number of foreclosures fell from 2,988 to 936. Given the fact that the economy seems to be strong, the spike in foreclosures came as a surprise to many observers.
The Takeaway
Though it is unclear whether the current upward trend in foreclosures in New York City will continue, some experts believe that the recently signed tax law may cause home values to fall, leading to a spike in foreclosures. Regardless of the circumstances, a mortgage is a contract between a lender and a borrower, and both parties are bound by its terms. Call our office or complete the contact form on our website to set up a consultation regarding your foreclosure matter or portfolio.
Posted in: Real Estate Litigation