New York City’s REO Inventory Increases by Six-Fold in Two Years

January 19, 2010 by · Leave a Comment
Filed under: Real Estate News 

The number of REO properties in New York has grown at an overwhelming rate, according to a recent report by the Furman Center for Real Estate and Urban Policy, a joint network of the New York University (NYU) School of Law and the Robert F. Wagner Graduate School of Public Service at NYU.

The report looked at the outcomes of New York City properties over the last 15 years, paying particular attention to trends in recent years. Although only a small portion of properties entering foreclosure ended up as bank-owned, the increased rate at which these properties entered REO status was staggering. From December 2006 to December 2008, the number of bank-owned properties in the city jumped from 290 to 1,830 and dropped slightly to 1,750 in September 2009.

Comprehensive analysis of this data revealed that most New York City properties that enter foreclosure never complete the foreclosure process, because the homeowner either sells or becomes current on their loan. Of those that do complete the foreclosure process and end up as an REO property, nearly half are bought and resold within a year for significant profit.

“Understanding the life cycle of foreclosed properties in the city is crucial to developing effective public policies to stabilize neighborhoods and families, and this analysis is an important first step” said Vicki Been, faculty director of the Furman Center. “If we can identify what kinds of properties are likely to end up as REO, where they are located, and what their effects are on the surrounding neighborhoods, foreclosure response efforts can be better targeted at the neighborhoods that need them most.”

In 2007, approximately 12,000 one to four family properties received a foreclosure filing, and the report found a wide range of outcomes of these properties by September 2009. The most surprising of these outcomes was that more than half of these properties were never sold and had not completed the foreclosure process as of September 2009.

Click Here to Continue Reading

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!