REOs surge in New York and New Jersey

New York /
Jun.June 16, 2011 03:15 PM

It appears that lenders feel the New York and New Jersey housing markets are ready to handle a new batch of distressed inventory. According to the latest data from foreclosure-tracking firm RealtyTrac, both states posted double-digit increases in bank repossessions of residential properties last month, far outpacing their peers.

New York, which saw a 97 percent spike in repossessions, and New Jersey, where repossessions rose by 21 percent, both use a judicial foreclosure process, which usually tends to be slower and more prone to delays. Overall, judicial foreclosure states saw a much smaller, 1 percent increase in bank repossessions during May.

According to James Saccacio, RealtyTrac’s CEO, the disproportionate surge in activity in New York and New Jersey is likely due to lenders “somewhat unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures and as they determine that some local markets are able to absorb more foreclosure inventory.”

Nationwide, foreclosure filings — including bank repossessions, scheduled auctions and notices of default — hit a 42-month low in May, with a total of 214,927 residential units, or one in every 605 residences, affected. That’s down 2 percent from April and 33 percent from May 2010, and non-judicial foreclosure states accounted for nearly two-thirds of this national total.

New York saw a 13 percent increase in foreclosure filings from April, and a 41 percent decline from last May. New Jersey filings dropped both month-over-month and year-over-year, by 15 percent and 87 percent, respectively.

But Saccacio warned that despite the declines, lenders are, in general, having a difficult time working their way through their inventory of foreclosed properties. “Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month,” he said.


— Sarabeth Sanders


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Eric Wu, formerly of Opendoor and Mike DelPrete 
iBuying on the brink: Where does the controversial homebuying model go from here?
iBuying on the brink: Where does the controversial homebuying model go from here?
How CRE brokerages are responding to i-sales slowdown
How CRE brokerages are responding to i-sales slowdown
How CRE brokerages are responding to i-sales slowdown
Libbie Mugrabi and Mitchell Holdings's David Mitchell with 320 East 82nd Street (Getty, Google Maps; Illustration by Kevin Rebong for The Real Deal)
Park Mansion owner struggles to collect $1.5M in rent from evicted socialite
Park Mansion owner struggles to collect $1.5M in rent from evicted socialite
Allen Weisselberg, Donald Trump (Getty)
Trump Org convicted of criminal tax fraud
Trump Org convicted of criminal tax fraud
Coldwell Banker CEO Ryan Gorman is leaving the firm
Ryan Gorman out as Coldwell Banker CEO
Ryan Gorman out as Coldwell Banker CEO
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...