New Foreclosures Drop in Brooklyn

Foreclosure results for the five boroughs were mixed in August, according to numbers just released by Property Shark. Staten Island and Queens saw increases in both year-over-year and month-over-month numbers, while the Bronx, Manhattan and Brooklyn saw declines in both numbers. In Brooklyn, the number of new foreclosures dropped from 31 in August 2009 and 37 in July 2010 to just 20 last month. (Click through to the jump for a map of the Brooklyn properties in question.) The big question is whether the trend is your friend or this is just the calm before the pent-up storm.


60 Comment

  • I guess that means we’ve reached the bottom of the Obama death-spiral? Nah… the banks are just being cleverer in hiding their defaults.

    I’ve heard that Gillibrand is becoming vulnerable? I don’t buy it: too many Brooklyn and union economic morons out there.
    But looks like the Dems may very well lose both Houses; and maybe, just maybe, Obama will resign?

  • Just continue to hide lis pendens off the map and everything will look fine.

    ***Bid half off peak comps***

  • You have data on trends in Brooklyn lis pendens filings, and know how to determine which lis pendens are foreclosure-related?

  • Honest to goodness job ad posted today on Craigslist in the ‘legal’ section:

    “Our company is looking for a part-time NYS Licensed Foreclosure Litigation Attorney
    Out company service homeowner whose currently facing foreclosure and auction.

    We’re looking for an attorney with a track record of prolonging the process.
    you will prepare motions, answers, reply and appear in court with the client.

    We currently have about 10 cases that need immediate attention.

    Must understand the real estate foreclosure IN and Out.

    Queens and Brooklyn Location
    please email sample of your pass work. and index # of your queens and brooklyn cases.”

  • By Brownstones Half Off on September 3, 2010 10:08 AM

    I should know this, but how does lis pendens reveal/hide foreclosures? Aren’t they simply public notice of liens? And were they ever “not hidden”?

  • Brooklyn would seem the most stable of the three major outer boroughs, so it would make sense that foreclosure rates would bottom-out here first. But until it’s clear either that the Republicans will have a near-veto-proof majority, or that Obama has received a brain transplant, I don’t see why anyone should have optimism for the housing market. Unless, of course the Admnistration figures out a way for banks to hide defaults better, which will, of course, only change the stats…

  • lis pendens is notice of any lawsuit that may affect title. Disptued ownership, specific performance suits, mechanic’s liens, tax liens, estate battles, other circumstances too numerous to list, as well as foreclosure actions. You have to look at the complaint to know whether lis pendens is due to foreclosure. So even if you had data showing trends in # of lis pendens filed, you wouldn’t know why or whether foreclosrue-related without drilling down further.

  • Thanks, Slope Farm. All I know is that BOA has gone from credit reporting keyed to “30 days late” to “payment by the end of the month”–that’s bought me an extra day or two (and payment by check at a branch at the end of the day on the 31st day doesn’t get presented for two days).

  • Queens is running out of property still owned by a person… thus the huge decline. Can’t foreclose if the bank already owns most of the houses!!

  • And BrooklynCouch says that he’s an attorney???? Personal injury????

  • BrooklyCouch weren’t you the one who hilariously tried to claim that the Community Reinvestment Act suddenly after 30 years of being in effect with no problem all of the sudden caused the finical crisis?

    Of course I can’t blame you, since you probably don’t even know what the act actually does, it just sounds like a good thing to blame it on because it hits all the idiot wing-nut talking points.

    Democratic president (Carter), check!
    Poor black and brown people, Check!

  • CRA was the proximate cause of the Mortgage meltdown because it enabled people who couldn’t reasonably afford mortgages to be granted them–the banks were forced by the Act to give them underpenalty of losing their charters and/or prevent mergers and growth. And government-owned banks were told to buy the mortgages.

    Newsflash: poor people are poor.
    Newsflash: seeing racism where there isn’t any is good for Democrats.

    Newsflash: the Democrat Party dies if it can’t maintain the illusion that Republicans and conservatives are rich white people oppressing minorities.

    Newsflash: you are brainwashed.

  • Here, NYGuy7, no reading necessary, so even you can process it:

  • Even better, but reading required; scroll down to
    Where the Blame Truly Lies In The Financial Meltdown This Past Week

  • Stupid, stupid, stupid. CRA required banks to lend in, rather than redline, minority neighborhoods. It did not require loans to unqualified individuals. It was meant to stop banks from using race and neighborhood as shorthand for individual qualifications and just start looking at mortgage applciants on their own individual merits. Banks were just too lazy to be rigorous about the distinction, and this laziness was facilitated and amplified by ease of mortgage securitization and passing on the risk elsewhere. And, of course, no answer to the question of why, for 30 years, CRA was not a problem until, suddenly, it was, and only during period banks were regulated by a republican administration. But yes, 2007 credit crisis was all Carter’s fault. Great — I’m going to blame the 70s oil shocks and recession on Eisenhauer. This CRA thing is a total canard.

  • Good heavens. Why does everything always have to come down to a Democrat vs. Republic argument? Some people can’t pay their mortgage. They get foreclosed on. Period. It’s not a conspiracy on either side. Sometimes bad shit happens.

  • *Republican*

  • Slopefarm, CRA didn’t even have any power to force banks to lend to people. All the act did was rate the banks based on how often they lent money to their own depositors. So even after it was enacted a bank could still refuse to lend to it’s black customers who met the same criteria as those who were borrowing in more affluent neighborhoods. It had zero power to actually force a bank to do anything.

  • From the horse’s mouth…

    “Lis Pendens (a.k.a. Pre-Foreclosures)

    Commonly referred to as Pre-Foreclosures, Lis Pendens is the very first step in the Foreclosure process. When a property owner fails to make three payments in a row, the lender files a Summons & Complaint which opens a Lis Pendens…”

    COMMONLY as in mortgage default most of the time.

    “…Other parties also open Lis Pendens when beginning a foreclosure procedure, such as tax lien holders and government agencies…”

    OTHER as in the minority of cases.

    “So even if you had data showing trends in # of lis pendens filed, you wouldn’t know why or whether foreclosrue-related without drilling down further.” – slopefarm

    True, you wouldn’t KNOW 100% for sure. But if open cases rise and remain elevated during the collapse of the biggest housing bubble you will ever see, one has to infer that MOST of them are indeed mortgage defaults. Even if it’s a contractor or NYC Finance, there’s still apparent distress that could eventually lead to mortgage default.

    Hypothesis: Most lis pendens are mortgage defaults.

    Maybe I’m wrong but PropertyShark appears to side with me. If you have data to the contrary, prove me so.

    ***Bid half off peak comps***

  • Both duhcrats and retardicans are responsible for the repeal of Glas Steagal and the unwillingness to reverse it.

    ***Bid half off peak comps***

  • *duhcrats and retardicans*

    Feel free to send me a bill. I may make use of this phrase in the future. Full credit to you, of course.

  • “Can’t foreclose if the bank already owns most of the houses!!” – tybur6

    Nope. But you can default on those that the bank has not yet reposessed. Map the damn lis pendenses!

    $100-Hotbird gift certificate, ‘snappy.

    ***Bid half off peak comps***

  • By InsertSnappyNameHere on September 3, 2010 11:23 AM.

    Since Democrats have held Congress for most of the last 40 years, Democrats need to be blamed; Republicans too, to the extent they went along with it.

    The big lie, the HUGE lie is that there was too little regulation. Actually, there was TOO MUCH regulation. Regulation forced banks to make stupid, risky loans. TOO MUCH regulation. Mostly because Whitey was exploiting everyone. Except he wasn’t.

    CRA was, and IS the “too much regulation.”

    Blame is important. Blame is critical to not repeating mistakes. Why are you afraid of blame?

  • By NYGuy7 on September 3, 2010 11:31 AM

    Yes, and Barney Frank is harmless!

  • I’m not afraid of blame. I’m just sick and tired of people like you trying to obscure the issue by bogging it down with long-tired partisan rhetoric that serves no purpose but to annoy the shit outta people trying to have a decent discussion. But don’t let me stop you. Carry on —–>

  • “annoy people”? Because anything that’s not leftist or liberal BS annoys people in that bubble. Oh, cry me a river, and grow up.

  • “Because anything that’s not leftist or liberal BS”

    Thanks for proving my point. Quite nicely, in fact. I’m out. Spew your shit to someone who cares to read it.

  • You are afraid of blame. My guess is that you voted for Obama. You live in a bubble of fact ignorance and of feelings. Thankfully, most Americans (at least outside NY) don’t, which is why the Dems are going to be gone in November–CHANGE!

  • All you’ve got BHO is a hypothesis. I don’t have data on % of LPs that are foreclosure-related, because the data would come from actually reviewing complaints. But you don’t have data and it is your hypothesis. For LPs to prove your point, you would need to show: 1. trend in increased ##s of LPs even as foreclosures drop; 2. majority of LPs are foreclosure actions; 3. most foreclosure actions result in foreclosures rather than payment or settlement. Without 1, 2, and 3, you have no factual basis to dangle LPs as evidence of some shadow inventory in the pipeline or likely spike in future foreclosures. But you like to assume your way to your assertions, rather than get data on all fours.

    Sheer idiocy to blame credit crisis and housing bubble on too much regulation. Gee, if only we’d given the banks and wall street more freedom to do as they pleased? But no, government had to hold a gun to wall street’s head and force it to securitize mortgages into ever worsening bundles, and force the banks to make loans without documentation of income and assets. These things would never have happened if the banks were just allowed to use their own good judgment.

    Nothing wrong with correctly-placed blame.

  • “obscure the issue by bogging it down with long-tired partisan rhetoric”

    So, then, just what is the “issue”? What causes the meltdown? Or did it just happen? Or was it too little regulation? Or was it GREED? Yes, must have been greed (as if that was invented in the last decade, or in the last century…)

  • Yep, too much regulation caused the crisis–that is clear. Regulation that induced, promoted, and even forced loans to be made; government regulation that created a “buyer” and/or guarantor for loans that, in less regulation-distorted market, would not have been made.

    The jig is up. The Democrat (and yes, Republican) social policy regulating morons are in for a bloodbath this fall. Conservative, anti-Democrat, anti-socialist officials will take their place.

    There will be crying and loathing on the streets of Park Slope and the Upper West Side–CAN’T WAIT!

  • I’ve seen couches covered in plastic, but never one sporting a tinfoil hat.

  • “All you’ve got BHO is a hypothesis.”

    A damned good one so far. And an LP’s don’t have to make it all the way to auction to indicate that prices are headed for further collapse. The formal NYC foreclosure process is notoriously slow enough to make all-cash shortsales a smarter practice for banks.

    Until proven otherwise, I’ll assume that elevated lis pendens activity is directly proportional to elevated distress and thus shadow inventory.

    Brownie said it best: “pent-up storm”.

    ***Bid half off peak comps***

  • If you vote Democrat, you deserve the economy you now have, and will have in the future (infinitely worse).

    If you vote Democrat, France, socialism, and poverty, here we come!

  • No, ‘Couch. It was deregulation then (sanctioned mortgage fraud/Ponzi valuations) and deregulation now (congress hijacking FASB so that banks can hide losses from the general public). Every Friday banks are shut down by the FDIC. In the overwhelming majority of cases, their assests are listed as greater than their liabilities due to the FASB hijack but behind the scenes there’s negative cash-flow.

    ***Bid half off peak comps***

  • bike lanes are Democrat right?

  • How is your hypothesis that most lis pendens are foreclosure actions and that they result in foreclosures “A damned good one so far.” You’ve got no data, just the idiots at Property Shark. I will tell you that I once filed a LP seeking specific performance of a contract to sell property. Ok, a data set of one, but that’s one more than you got.

  • “It was deregulation then (sanctioned mortgage fraud/Ponzi valuations) and deregulation now (congress hijacking FASB so that banks can hide losses from the general public).”

    There’s one very simple, elegant way to prove that you are full of it with this “theory”: there’s been no deregulation in the past four years; and yet there have been no hearings/trials/investigations that found anything deregulated.

    Do you really think that if deregulation was even plausibly the cause, the Dems wouldn’t have acted?

    The Dems did NOTHING because they know they are at fault!

  • Gee I quit my 3-pack a day habit two years ago so my lung cancer wasn’t caused by cigarettes. Yes, the credit crisis was only caused by things that happened since August 2006, as only mortgages issued since 2006 went bad.

    I don’t know what it is, but BC brings out a real urge for sarcasm from me. You’re a lawyer, BC, get off the couch, read the CRA and regulations promulgated pursuant thereto, and cite the one that compelled the banks to make bad loans.

    “The Dems did NOTHING because they know they are at fault!”

    Um, the dems enacted regulatory reform of banks and wall street this year.

  • slopefarm – that couch is scotchguarded and impervious to facts.

  • ead the CRA and regulations promulgated pursuant thereto, and cite the one that compelled the banks to make bad loans.

    I have read them, and they say what I have said. They also leave huge latitude for morons like Barney Frank and Charles Rangel to tie up banking transactions with cries of RACISM!!!!!!

    Again, where are the supposed regulations that are missing, and why hasn’t this most pristine and Democrat-ic of Congresses enacted them?

  • “and yet there have been no hearings/trials/investigations that found anything deregulated.”

    Plenty of hearings right here.

  • Pay attention. there may be a test. The following caused the mortgage meltdown:

    1. people taking out mortgages they could not afford based upon the never-ending increase in home prices.
    2. securitization of mortgages so that the banks writing loans no longer had a vested interest in ensuring the loan would be paid back, causing loan prerequisites to fall to 0.
    3. bond rating agencies that ignored the underlying weaknesses in the bonds they were grading.
    4. bond holders who looked at the returns without any investigation of what they were buying.
    5. regulatory environment that failed to notice or respond to any of the above.

    My personal view of culpability is (from highest to lowest): 3, 2, 4, 1, 5.

  • “You’ve got no data, just the idiots at Property Shark. I will tell you that I once filed a LP seeking specific performance of a contract to sell property. Ok, a data set of one, but that’s one more than you got.” – slopefarm

    The “idiots” at Property Shark have much more data and pre-foreclosure insight than you or I and they imply that most lis pendens are filed “When a property owner fails to make three [mortgage] payments in a row”.

    “in the past four years…there have been no hearings/trials/investigations that found anything deregulated.” – Brooklyn Couch

    No regulation is deregulation. Bill Black sent over 1,000 banksters/fraudsters to prison after the 90’s S&L crisis. Today we have an even bigger crisis yet very few in the financial industry are investigated, let alone convicted.

    In 2009 Barney Frank politically coerced FASB (threatened charter) to change accounting rules from those of mark-to-market to Enron-style (keep asset values artificially inflated on balance sheet by not selling them, even though mark-to-market fire sales would crush them).

    You call this regulation?!

    ***Bid half off peak comps***

  • “Mostly because Whitey was exploiting everyone. Except he wasn’t.”

    What a dick. Black people make up only 13% of the population, and it’s not states with majority black populations that are at the epicenter of the housing crisis. It’s Nevada, Arizona, and Florida. Not bedstuy.

  • The very Ponzi nature of the mortgage market since 2003 caused its meltdown.

    Simple, slick.

    ***Bid half off peak comps***

  • Great point, denton. But Brooklyncouch never let a fact deter him from spouting wing nut talking points.

    “If you vote Democrat, you deserve the economy you now have, and will have in the future (infinitely worse).

    If you vote Democrat, France, socialism, and poverty, here we come!”

    This is hilarious. 8 years of the Bush administration is forgotten, and the self-serving Republican antics, then and now, have no reality for you, bc? Were you born in 2008? Must be because you have a serious case of political and financial amnesia. Not to mention, you’ve got anger management issues too. You need reupholstering.

  • 8 years of the Bush administration is forgotten

    Which part did I forget? The huge increase in tax revenues? The tiny unemployment rate? That it all ended when the Democrats took over Congress?

    If Obama had lost in 2012, the unemployment rate would currently be 2-3% lower, easily. There still would have been a recession, but not the horror we are living now.

    But no, we got a dolt with a smooth voice, and an affirmative action stamp in his passport. We got a Congress who needs to “pass bills so that you can see what’s in them.” We got a Congress and President that spent/wasted more in 20 minutes than during a supposed “bad” war.

    When will you look in the mirror and admit that you voted, and continue to vote for morons who trade on lies and demagoguery? WHEN?

    This is the most depraved, leftist Congress in history. This is the shit-iest, laziest, leftist President in history.


  • The huge increase in tax revenues?????? Oh you mean after they cut taxes hugely for the rich and then spent everything else on the UNNECESSARY WAR in Iraq? The bubble they created that made us think we were doing so well while they dug out the foundations from under us? Explain to me the crash that happened on the Bush administration’s watch. You remember- BEFORE Obama even got elected. Explain to me again how well the republicans took care of this country.And I’ll explain to you the concept of delayed toxic reaction.

    Boy, brooklyncouch- you have serious issues of perception and racism. (That old affirmative action myth again- you just never learn, do you?)Take a chill pill or get a rabies shot. Something is bound to help.

  • “Affirmative action stamp?”

    Says all I need to know about you, Brooklyncouch.

  • Affirmative action stamp? Yes, how else to explain why his only real job was “organizing” poor people? No bills written as senator, no law review articles. No grades published, no birth certificate provided. A complete magician at turning nothing into something. Terrorist buddies. Depraved “preacher’s” church, et al, et al. But yes, he has a sexy voice!

  • By bxgrl on September 3, 2010 5:05 PM

    Wish I can see how miserable you’ll be on November 3–can you install a web cam? Also, I’ve heard Obama will resign. Now, a dolt like Biden isn’t good, but I don’t think he can do as much harm as Obama.

  • Unfortunately, Obama’s 15 minutes (15 months) ended in, probably February 2009, and we’re left with the sack of *you know what* he expelled.

  • By daveinbedstuy on September 3, 2010 10:55 AM

    Personal injury and commercial litigation.

  • Methinks it’s best not to feed the trolls.

  • By squaredrive on September 3, 2010 6:00 PM =

    I can’t respond on the facts, ego, he is a troll.

  • squaredrive- too right. It’s just so much fun to see them get all frazzled and then they start posting the most ridiculous nonsense. The more upset they get, the crazier they get. At some point I expect brooklyncouch to explode.

  • Actually, look for explosions when Congress goes Democrat, and Hillary mounts a primary challenge to Obama.

  • By slick on September 3, 2010 2:50 PM,

    Re 1., that’s correct on some level, except it fails to explain why banks were willing to offer mortages to such people–answer, CRA, and FANNIE and FREDDIE, aka REGULATION, not the lack thereof.

    Re 2., same answer: FANNIE and FREDDIE, aka Regulation, not lack thereof.

    Re 3. The ratings agnecies screwed up, but as you may know, there are only three such agencies due to…REGULATIONS. In a free-er, more competitive market, I suspect that moronic practices of these agencies would have been ferreted-out before a crisis.

    Re 4. Yes, true, but this is kind of linked to #3, supra.

    Re 5. This is not a distinct reason.

    In other words, not too little regulation, but too much. Or, the wrong regulations, but not too much.