A new report from the Furman Center at NYU is troubling not only because it confirms what we all knewâ€”that foreclosures are on the rise in New York Cityâ€”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]