Report: Subprime Foreclosures Rampant in Brooklyn
On Friday the Federal Reserve Bank of New York released data listing how many subprime loans there were in New York state in October (broken down by zip code) and how many of those loans were in foreclosure. Bottom line? Bad news for Brooklyn, especially in the zip codes that include Crown Heights, Bedford-Stuyvesant, East…
On Friday the Federal Reserve Bank of New York released data listing how many subprime loans there were in New York state in October (broken down by zip code) and how many of those loans were in foreclosure. Bottom line? Bad news for Brooklyn, especially in the zip codes that include Crown Heights, Bedford-Stuyvesant, East New York, Williamsburg, and Bushwick. As reported in the Daily News, there were foreclosure proceedings under way for 25 percent of homeowners with subprime mortgages in 11233, which covers Bedford-Stuyvesant and Crown Heights. That subprime foreclosure rate is almost four times the national average of 6.89 percent. As the chart above shows, subprime foreclosure rates were also high in other Bed-Stuy/Crown Heights codes (11212, 11213, 11216, and 11238). The data also shows that 435 homes with subprime loans in East New York were in foreclosure. Foreclosure rates on properties in the zip codes covering Williamsburg and Bushwick, meanwhile, were also high (though the total number of subprime loans in those Zips was smaller than in Bed-Stuy, Crown Heights and East New York): 22 percent of homes with subprime loans in the 11221 Zip code were in foreclosure.
Brooklyn Neighborhoods Top Subprime Foreclosures in Nation [NY Daily News]
New York Fed Releases Zip Code Level Data on Nonprime Mortgages [NY Fed]
subprime does not mean super-leveraged, it just means lower credit score or undocumented income.
I agree coops will probably not see foreclosers at the same level as other types of homes, but they are definately not immune.
“And it has been said many times during the RE heyday (2005-06) that sub-prime did not make up a significant amount of mortgages in NYC. Just like GDP and corporate earnings, this claim is being revised with a vengeance.”
Where do you see that 1:16. Based on the numbers above, I would imagine the percent of subprime is very low. Based on the above table there are 13,547 subprime loans in Brooklyn which consists of around 3 million people. I dont klnow how many total mortgages that equates to, but 13,547 seems like an awfully low number to me.
Most coops, including my own, would never allow super-leveraged loans. We demand 25% down. Don’t look to coops for bad news. Condos are something else again.
12:19,
This bust will dwarf that of the 90’s. The bigger the boom…
Trend, 12:13. TREND.
” The inventory for houses is dismal though, that’s what stinks about looking to buy right now.”
Where foreclosures go, inventory will follow.
“…zip code is not the best indicator of what area or neighborhood you’re referring to…”
It’s also not the best indicator of which nabes have escaped foreclosure either. All we know is that Clinton Hill and Prospect Heights are fair game. And it has been said many times during the RE heyday (2005-06) that sub-prime did not make up a significant amount of mortgages in NYC. Just like GDP and corporate earnings, this claim is being revised with a vengeance.
Where would you put Greenwood Heights and South Slope?
Unfortunately 1:00 the media perpetuates the demand. Hysterical and alarmist news stories get ratings and attention, they are only giving us what we demand.
If nobody paid attention to this stuff, they would quickly change their tune – but we keep digesting it, so it will never leave.