Foreclosures in NYC Bring Realty Veterans to the Rescue

Amy Munday's picture

Foreclosures in NYC have increased since last year. Realtytrac released stats on Thursday stating that New York City homeowners have an increased of 35 percent when compared to January 2009 rates. Compared to December 2009 however, the rates revealed a decrease, but will that trend last?

Brooklyn suffered the worst in comparison to other areas of the city incurring 693 foreclosure notices in January, an 86.8% increase compared to January last year. Compared to December 2009, foreclosure notices decreased by 8.5 percent. The rest of the 5 boroughs fared better in comparison to December as well, but worse when compared to January 2009.

"We expect this to continue for the next three to four months before it plateaus," states Michael Hickey, executive director of the Center for New York City Neighborhoods, "We are still in a crisis." Hickey organizes free housing counseling and legal services for real estate in NYC.

All of New York State accounts for 59,990 foreclosed homes with an average foreclosure sales price of $314,010. For example, 1 in every 1,737 housing units received a foreclosure filing in January 2010. These foreclosure rates are found by calculating the total number of housing units (acquired from the most recent U.S. census bureau estimates) and dividing that number by the amount of homes that received a foreclosure filing in that month. A ratio is then developed by the results.

Perhaps the most recent NYC foreclosure shocker was the Tishman and Blackrock Properties failure to make a $16 million loan payment for the Peter Cooper Village and Stuyvesant Town realty properties. The properties are now being sought after by a New York City Realty veteran family, the LeFraks, who apparently take the nature of NYC real estate with a grain of salt and avoid "going on a binge."

“What the families have a claim to is that they never go away,” said Steven Spinola, president of the Real Estate Board of New York. “When this economic crisis goes away, they’ll still be here. We’ll see about the other guys.” The other guys being the younger, flashier buyers that take the market by storm and buy everything in site for record-breaking prices.

Related News Stories
Creditors Take Tishman and Blackrock Properties in Manhattan,
New York City Veteran Realtors

Written by Amy Munday

Add new comment