NYC Foreclosures Surge 79%; Most Since 2009

Tyler Durden's picture

A few weeks ago we noted that New York's 'smart money' at a variety of U.S. banking institutions were tripping over each other to underwrite dividend recaps for owners of expensive commercial real estate projects just as buyers of those properties suddenly dried up completely (see: NYC Commercial Real Estate Sales Plunge Over 50% As Owners Lever Up In The Absence Of Buyers).  But we're sure it was nothing...the 27-year-old analysts leading those bank deals, fully syndicated deals in which their respective employers will retain no risk by the way, probably just know more about the commercial real estate market than those who count themselves among the list of former prospective buyers.

Still, it does seem odd that the commercial real estate market in NYC is collapsing at the same time that residential foreclosures are surging to levels not seen since the 2009 crisis.  As Property Shark points out today, foreclosures across NYC surged 79% YoY in Q3 2017, to 859, and remain at the highest levels since the 'great recession.'

All 5 boroughs registered increases in the number of homes scheduled for auction, though Staten Island, the Bronx, and Brooklyn saw numbers skyrocket compared to Q3 2016, up 264%, 145% and 118%, respectively.

Meanwhile, the eastern neighborhoods of Brooklyn and the Bronx seem to be the most impacted as Staten Island foreclosures are rising fairly uniformly.

And here is a more in-depth look at the individual boroughs...


A record-high number of homes were scheduled for auction in Q3 2017, representing a 145% increase compared to Q3 2016. The number of cases in the Bronx kept relatively at the same levels for the past quarters with a spike in Q2 2016 but otherwise hovering around 100 homes per quarter or even lower than that. Back in the second quarter, the Bronx was the only borough that recorded a year-over-year decrease in foreclosure activity. The situation changed drastically in Q3 2017 when 247 homes were scheduled for the first time.


Zip code 10469 had the highest number of new foreclosures: 32 homes were scheduled here in Q3 2017. Not far behind, zip codes 10462, 10473, 10466, and 10465 all had close to 30 new cases each, showing a concentration of foreclosure activity in the eastern half of the borough. The graph below captures the evolution in the number of cases and the spike recorded this previous quarter.


While compared to the previous quarter’s count of 264 homes scheduled for auction, Q3 2017 seems to have brought some respite for Brooklyn, the number of homes headed for auction is still high. Q3 2017 brought a 118% year-over-year jump, given that 205 homes were headed for the auction block. When looking at Q3 2016, only 94 new foreclosures were recorded in the borough.


Zip code 11236, covering Canarsie, had the most cases filed – 31 homeowners here saw their homes scheduled to be auctioned in Q3 2017. East NY, Canarsie, and the Flatlands are usually the scene for the highest number of cases in Brooklyn, but this time we noticed increases in Southern Brooklyn zip codes as well. For example, in 11229 there were only 4 first-time foreclosures in Q3 2016, compared to 15 in Q3 2017. Bed-Stuy’s 11233 also recorded a jump in cases from 2 in Q3 2016 to 10 in Q3 2017.


The first three quarters of 2017 were particularly harsh for Brooklyn homeowners, especially compared to the numbers we tracked over the past years. While in 2016 there were a total of 410 homes scheduled for auction in the borough, with only 3 quarters elapsed from 2017, there have already been 637 new foreclosures. Check out the graph below for a detailed, by-quarter evolution of first-time foreclosures in Brooklyn.

Staten Island:

Historically, Staten Island had low numbers of homes heading for the auction block, but the second quarter of 2017 brought a record-high number: 105 first-time foreclosures were scheduled. In Q3 2017, the number went down 24% quarter-over-quarter, but it was up 246% year-over-year. That’s also due to the fact that Q3 2016 only had 22 cases, which was low even for what we’re used to seeing each quarter in Staten Island.


Back in Q3 2016, Queens accounted for almost half of new foreclosure cases in NYC, as 227 of the 481 new foreclosures in the city were recorded in Queens . The first two quarters of 2017 brought a high number of cases with a peak in Q2. In the third quarter of 2017, however, foreclosures in Queens dropped 26% quarter-over-quarter and settled in at 288 cases.


Though still up 27% compared to Q3 2016, Queens is now far from having around half of all NYC cases, mainly as a result of the increases recorded in Brooklyn and the Bronx. In Q3 2017, the number of new foreclosures in each of the two boroughs was close to reaching the one recorded in Queens.


Queens also used to be home to the top zip code by number of foreclosures – Jamaica’s 11434 consistently had a high number of cases each quarter. This time, there were 29 first-time foreclosures in 11434, fewer than the numbers recorded in the top zip codes for both Brooklyn and the Bronx.


Not surprisingly, the only folks that haven't experienced a surge in foreclosures are the bankers and hedgies living in Manhattan who continue to benefit from bubbly markets growing bubblier by the least for now.

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remain calm's picture

Move along,nothing to see, nothing to worry about.

Oldwood's picture

Strictly anecdotal. I'm sure they will tell us if there was ANYTHING to worry about.

Drink up...

FatTony7915726's picture

The black folk don't even leave their fried chicken bones anymore in the aisles of my Baptist Church in the Bronx.  Times are so bad that they eat the bones too.  You can blame Obama for this!!!

MoreFreedom's picture

This isn't going to help the Fed unload their balance sheet of mortgage backed securities.  Instead, the value of these "assets" is declining.

And it won't help the dollar either.

espirit's picture

Yeah, they're eating their own.

Rapunzal's picture

2008 subprime was contained.
2018 luxurious condos are contained ;)

foodstampbarry's picture

Yep, niggas are broke these days!

Silver Savior's picture

At some point everything has to go. Everything can only be so fucking fake for so long. 

brushhog's picture

A coming recession seems pretty obvious.

Silver Savior's picture

A coming recession? This is a continuing recession from the year 2000.

christiangustafson's picture



kahplunk's picture

For some reason I am craving candy apples

thecondor's picture

With all the new super talls going up around Central Park, I don’t know if they have enough buyers. There is two super tall and super skinny apts going up. One is right next to Central Park Tower at 217 W 57 st. It’s goin to be just shy of 1WTC but will have a higher occupiable floor. Then there 111 w 57 st, my favorite of all the new stuff going up. Another super tall going up at grand central terminal called 1 Vanderbilt place. Plus all the work Hudson Yards. Lots of 1000 foot plus buildings going up being sold as luxury condos (Hudson’s yards is mixed use I think) but is there enough buyers. Usually these sell out before they break ground and that’s not the case right now. I believe that 111 w 57 needed a bailout because the builder ran out of money. We all know the ZH the Chinese money is drying up.

chunga's picture

Property Shark? That sounds nice.

pocomotion's picture

The racial crap has got to be coming from trolls working for our government. 

Race war, country music, guns, democrats and no functioning Judicial, administrative, nor legislative branch to arrest, try and convict themselves.

That leaves you and I holding the bag. 

I gotta go as the Viking vs. Bears game is calling...........

christiangustafson's picture

Don't do it, man!

Sportsball is for proles!

Omen IV's picture

Less than 1,000 in a city of more than 8.000.000 people

A joke !

aloha_snakbar's picture

I hear living under the subways is nice this time of year...

Silver Savior's picture

I would before paying those shitty rents.

Anarchyteez's picture

Top chasers everywhere.

Soon to be parted with their $ in every direction.

Arthur Schopenhauer's picture

If you drive your car over an overpass you can see the pros living under there. So, if you are living under an overpass,  do you consider yourself to be an overpass pro, or an underpass pro?

Arthur Schopenhauer's picture

If your feet are standing in a 450 degree fire and your head is encased in a block of ice, do you assess your situation and say to yourself on average the temperature is normal?

JailBanksters's picture

Janets got an App for that

She can do a Trillion Dollar Reverse Hedge Tripple Bond Rollover from her Phone that can fix everything.



boeing747's picture

I saw more restaurants and mall stores closed down in sillycon valley, the end is near.

oliversmithenson's picture

It is still a bit far from the October 2007 highs of 3,200 foreclosures. Though it seems odd to see a rising trend in foreclosures on post-2009 mortages while people still had the Home Affordable Modification Program and all time low rates. I love the smell of a recovery. 

I guess these people are outliers who weren't able to develop the new economy's skill of BTFD with their stagnant wages. 

Ink Pusher's picture

And they laughed when I foretold  that capitalism and cannibalism would indeed become synonyms in the 21st century.

Who's laughing now?



venturen's picture

how do you get foreclosed with interest at zero? Wait till it goes to 5%

Drop-Hammer's picture

So long as those skeezy Christ-killer land-lords are getting the high hard one, I am happy.