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June 21, 2007

Brooklyn Nowhere Near Top of Foreclosure List

First the good news: when CNN put together a list recently of the zip codes around the country with the most foreclosures, New York State didn't have a single spot in the top 300. Now the bad news: Of the four zip codes in the state that made the top 500, three of them were in Brooklyn: 11207 (East New York), 11208 (East New York) and 11233 (Bed Stuy and Crown Heights). It appears that East New York is by far and away the worst hit neighborhood thus far with Bed Stuy and Crown Heights suffering as well. But this isn't anything we didn't already know, right?
Foreclosures drift to Sun Belt from Rust Belt [Money/CNN]

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"But this isn't anything we didn't already know, right?"

How did you know? Did you pick up the news while driving your car to Union Market? Brownstoner, if you just came out and were honest that you're a selfish, classist Nimby, people wouldn't be as enraged at your subtle, apparently un-selfconscious inferiority complex. (this may be a giant projection, but at least I have the class to admit that I have racist tendencies coursing through my veins).

Posted by: blingbong at June 21, 2007 9:05 AM

No, actually, the rising number of foreclosures in those areas has already been mentioned several times on this site and in many newspaper articles.

Posted by: Brownstoner at June 21, 2007 9:16 AM

B-stoner, that you have the technical ability to remove the drivel above but don't is a testament to you!

Posted by: John at June 21, 2007 9:19 AM

I'm curious then Brownstoner, would you say that you have ingrained racist tendencies? (It will help me as a reader of your blog to know where you're coming from on this one.)

Posted by: blingbong at June 21, 2007 9:26 AM

If I read the article in the Times over Memorial Day weekend correctly, we are unlikely ever to see a huge number of foreclosures in New York State because state law makes the owner of the house, NOT the mortgage holder, the actual owner of the property, and therefore it's a longer and more expensive process to foreclose. Not that we haven't had problems in this area circa 1990.

Posted by: Anonymous at June 21, 2007 9:31 AM

I think the above news should be taken with a grain of salt becuase the foreclosure process in NYS is a lot more complicated and drwan out than many of these other states. it takes approximately 90 days for the foreclosure porcess in NY while only 30 days in texas. So that does not mean that homeowners in NY are not suffering but it is a much more complictaed and long-winded process for banks to foreclose in NY.

Posted by: anon at June 21, 2007 9:34 AM

hey my zip code tops the list! for some reason 11207 also occupies a small part of Southern Bushwick, but i'm not sure how many of the foreclosures have been in my neighborhood vs ENY proper.

so does anybody feel like adding up all the brooklyn numbers to give us a grand total?

Posted by: Jimmy Legs at June 21, 2007 9:34 AM

It should also be noted that both Bed Stuy and Crown Heights are both very large, spread out communities that are served by several zip codes. The Bedford Corners area of BS and much of Corwn Heights North are served by 11216.The other half of Crown Heights Noth, as well as Stuyvesant Heights are served by 11233. If you look at a zip code map, 11233 is adjacent to the ENY codes mentioned above.

End result, a great deal of economic variation can exist within one zip code, so while some statistical meaning can be drawn from this, it really doesn't mean much in terms of evaluating the merits or failures of a neighborhood.

What would have some merit is for some kind of study to be done to see what kind of homes are being forclosed on, and who owns them, ie: is it new homeowners who overextended themselves, or oldtimers who took out predatory loans, or something else altogether? This would be valuable in figuring out how to help these people, and preventing more forclosure, which in the end, helps no one.

Posted by: Brower Park at June 21, 2007 10:00 AM

Fingers a little clumsy this morning, I managed to twice mispell my own neighborhood!

Posted by: Brower Park at June 21, 2007 10:02 AM

I guess it could get a LOT worse in these zip codes before it gets better. The stats don't really tell the story, what would be a repo in vegas (because the market has dried up completely) could just be a hurried sale from a new owner struggling and in arrears, in bed stuy.

But this thing still has legs. If all this garbage debt floating around on the street gets marked down in value then first the wild hedge funds will fail and depending on how much money is revealed to be involved the mess could impact the almighty investment banks that underpin this ridiculously hot property market in white new york.

Wall street and equity markets are having another bumper year, the property market in brooklyn heights to prospect heights to windsor terrace is mostly up there because of this. If you aren't getting paper rich because of bonuses you are feeling rich because your mutual fund went up 20% year to date.

The sub-prime mess may just uncover a bit of a debt pyramid in the next few weeks to months..

Posted by: Anonymous at June 21, 2007 10:14 AM

Also, # of people living in various zip codes varies, # of homeowners, etc.
Easy method to come up with stats - but for comparison purposes of little value.
And, yes, zip codes do not correspond directly to 'neighborhoods'. As in one neighborhood can be partially in several zip codes. And 1 zip code can include several neighborhoods and parts of other.

Posted by: Anonymous at June 21, 2007 10:15 AM

Finally proof that there is no bubble issue in New York. Prices will be up at least 20% in Brownstone Brooklyn in 2007. Lovin' it.

Posted by: The Player at June 21, 2007 10:47 AM

It's worth noting that there has been, proportionately, more home development in these areas (ENY in particular) than in almost every other area of the city. More development has meant a higher percentage of foreclosures.

Posted by: Anonymous at June 21, 2007 12:59 PM

"What would have some merit is for some kind of study to be done to see what kind of homes are being forclosed on, and who owns them, ie: is it new homeowners who overextended themselves, or oldtimers who took out predatory loans, or something else altogether? This would be valuable in figuring out how to help these people, and preventing more forclosure, which in the end, helps no one."
Brower Park

I read, about a month ago, an article, with a map showing in red all the areas in Brooklyn affected with high foreclosure rates... I seem to recall reading that in many of the areas the folks the most affected were elderly homeowners who had taken out predatory loans to fix their homes.

Also came across this article dealing with the subject:
https://www.naca.com/content/press/articles/PressRelease_2007_04_11.pdf

Posted by: bren at June 22, 2007 10:19 AM

Another recent article about the subject
of foreclosures in NY...

http://www.nydailynews.com/news/2007/05/09/2007-05-09_pols_raising_roof.html

Posted by: bren at June 22, 2007 10:28 AM

This is the site that posted the map, and discussed, 2006 Foreclosure patterns in Brooklyn:

http://gowanuslounge.blogspot.com/2007/03/brooklyns-serious-mortgage-foreclosure.html

Posted by: bren at June 22, 2007 10:48 AM

uhhh it seems like the posts that were made some time back this year are again wrong? Gee, what a surprise.

BROOKLYN IS UP AGAIN.

Does anyone care to offer their ingenious opinions again?

Posted by: stoner squad at June 23, 2007 1:53 AM

Don't worry folks there are plenty of foreclosures bound to hit the Brooklyn area within the next 90 days, If you ask local real estate agents they will say it ain't happening here buddy, well I say stick around Who is holding onto and paying a million dollar mortgage when the value is falling bellow 500,000?

Posted by: guest at April 6, 2008 12:24 AM

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June 21, 2007

Brooklyn Nowhere Near Top of Foreclosure List

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