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 foreclosure rates were also high in other Bed-Stuy/Crown Heights codes (11212, 11213, 11216, and 11238)…”
11238? Wait a minute! These stats can’t include Clinton Hill, can they.
11238 also includes parts of Clinton Hill.
Uh, I read 11:07 as someone’s joke to purposely incite a neighborhood war, duh.
What is really interesting is the # of subprime loans – not necessarily the % in foreclosure. For example, zip code 11215 has 123 subprime mortgages – Even if all of them (100%) forclose, that is probably less than 1% of the total mortgages in that zip code.
Hey 11:20, have you ever heard of irony? 11:07 = tongue in cheek!
Do you even comprehend what 11am was saying, 11:07? Doesn’t seem you do. He was pointing out that zip code covers a larger area in Bed Stuy therefore there are MORE HOUSES therefore the numbers are similar if you are looking at foreclosures PER CAPITA. You know, like business people and bankers and people who aren’t housewifes sitting at home getting over defensive about their neighborhood they overpaid for.
Park Slope is a great neighborhood. Yes. But the fact that it is a great neighborhood and a better neighborhood in some kind of general way than Bed Stuy does not make it inherently immune to foreclosures. In fact, I’d say we should expect to see more foreclosures in Park Slope coming along in the future, because a LOT of young families way overextended themselves to get into that neighborhood.
As for the more slowly gentrifying neighborhoods like Bed Stuy and others, it might be that we see fewer foreclosures because there are a greater number of middle class people who have owned their houses 30+ years and owe less money on them. This mortgage crisis will affect every neighborhood in Brooklyn and the entire country. Don’t fool yourself it won’t.
funny they have 11238 as one of the zip codes. i lived in 11238 for years and it was always considered prospect heights. hmmm, interesting.
BAD NEWS ALL AROUND, no matter what the zip code people.
bed-stuy = park slope