Foreclosure Filings Down, While Bank Repossessions Up in NYC

There appears to be some good news on the home front being reported.

According to The Real Deal, New York City has seen a 20% decline in foreclosure filings as compared to the same period in 2009 on an annual basis.

Queens, ground zero for foreclosures stemming from subprime loans, saw the biggest decline, with nearly 49% fewer foreclosure filings in a year over year comparison.

Brooklyn saw a decline in Lis Penden filed against homeowners in NYS Courts, with only 1 out of 1,546 property owners receiving a foreclosure notice.

So is it time to break out the champagne and celebrate?

Bank Repossessions are Up in NYC

While the number of foreclosure notices is declining as compared to a year ago, the figure everyone is watching are the number of properties being seized as a result of default judgments by banks.

And in the same period measured for foreclosure filings, Banks repossessed 93,777 properties in New York City, representing a 44 percent increase from the previous year.

An increase in the real estate owned portfolios is an indication that lenders are prepared to finally deal with the massive number of default judgments won in court.

It’s also an indication that significant liquidity exists among investors to sell parcels of 5 to 20 properties at a time.   And there are lots of investors viewing the current undervalued real estate market, neighborhood by neighborhood, as a buy signal.

Since the home buyer tax credit expired

Banks were aware that the number of qualified home buyers would shrink by the end of the summer 2010 and they would find themselves either watching their judgments expire or forced to contend with homeowners occupying properties indefinitely.

Worse, they could find properties abandoned by their former owners and squatters occupying the properties with bogus legitimate claims to tenancy that would need to be adjudicated in Landlord / Tenant court.

What’s your next move?

If you’re serious about buying your new home, then you should continue reading our series on Short Sales in Brooklyn Real Estate.

If you’re interested in remaining in your home, and you live in Brooklyn, then you should stay tuned for the unveiling of our Plan to Save Brooklyn Neighborhoods.

Make sure you don’t miss our plan for Brooklyn or installments from our short sales series by subscribing to My Brooklyn Report.

Your opportunity to learn about each option is as easy as reading an email, as you’ll get both updates in your inbox when they’re published.

Get yours by getting some right here at My Brooklyn Report!

Michael A. Corley is a licensed Real Estate Broker and Exec. Vice President atCorley Realty Group.  Born and raised in Bedford Stuyvesant, he now resides in Crown Heights with his wife and children