REOs Rising Along With Foreclosures
A new report from the Furman Center at NYU is troubling not only because it confirms what we all knew—that foreclosures are on the rise in New York City—but that the number of properties that fail to sell at foreclosure auction and end up in the possession of the lender (known as REOs) is also…
A new report from the Furman Center at NYU is troubling not only because it confirms what we all knew—that foreclosures are on the rise in New York City—but that the number of properties that fail to sell at foreclosure auction and end up in the possession of the lender (known as REOs) is also growing by leaps and bounds. There were over 17,000 foreclosures in the city last year and the number of REOs topped 1,700. Why is this particularly bad news? “Because large financial institutions or mortgage trusts see the properties as minor assets, they sometimes do not make maintenance of the properties a priority, and the neglected properties then can become neighborhood disamenities.” The report’s not all doom and gloom though: First of all, the situation in New York is much less dire than in most major cities; secondly, the report finds some evidence that the number of REOs is plateauing.
NYC Foreclosed Homes Owned by Lenders Spikes [Crain’s]
Foreclosed Properties in NYC: The Last 15 Years [Furman Center – PDF]
The data is flawed! In order to get forclosured to freeze the government has umped billions of our dollars into the housing pit and forced the Fed Reserve to keep interest rates frozen until next year at 0.0001 percent (Free). Once these programs expire ec 31,2009 and interest rates start coming up you will really see forclosures go up 10 fold.
The Magical Kingdom is Brownstone Brooklyn, a place where some here believe is immune to the full effects of market bubbles.
“The report’s not all doom and gloom though: First of all, the situation in New York is much less dire than in most major cities”
I wonder why. Oh, must be the lax foreclosure process. So, actually, it is dire like everywhere else. That shadow inventory is out there. You might not see it, but it’s there.
“the report finds some evidence that the number of REOs is plateauing”
Wait’ll summer when the gov kickstand buckles.
WHAT ABOUT PREFORECLOSURES? WHERE ARE THEY FROM THE TROUGH?
***Bid half off peak comps***
*ongoing easy jumbo mortgage financing*
where is this magical kingdom of which you speak?
it’s not 2003-2008 anymore.
that said, the pendulum will swing back to greater availability as the banks fill their capital hole.
There’s an interesting Forum post about the problems someone is having trying to purchase a foreclosed property. The bank “winterized” it presumably to avoid the cost of heating it and that presents inspection problems…
http://bstoner.wpengine.com/forum/archives/2010/01/inspecting_a_wi.php#comments
New numbers from Fitch out yesterday show that, in New York, December year over year jumbo prime RMBS at least 60 days in delinquency jumped from 1.8% to 5.8%. Something to think about for all those sure of ongoing easy jumbo mortgage financing in our Magical Kingdom.
Figure E, the top graph, would indicate to anyone who can read a graph that not only have ROEs plateaued but they are beginning to trend downward.
Figure F contains only the total for the entire year. One cannot discern whether or not the numbers continued to rise at the end of 2009, plateaued or dropped like in Figure E.