Northeast U.S. steers clear of top foreclosure rate list

TRD New York /
Jan.January 23, 2012 03:00 PM

Think the foreclosure crisis is taking its toll on New York City housing? Imagine what it’s doing out west.

According to an analysis of the 100 U.S. zip codes hit hardest by foreclosures prepared for CNN by RealtyTrac, 82 of the worst hit neighborhoods are in Western states, with Nevada and California together comprising 66 of them. Meanwhile not a single zip code in the entire Northeast claims a spot on the list.

CNN noted that this is a stark contrast from 2007, the last time the list was compiled, when working-class, urban, Rust Belt neighborhoods, like Detroit, Cleveland and Indianapolis, topped the list. Today, many of the hardest hit zip codes are relatively new communities built around growing Sun Belt metro areas. The five zip codes with the highest foreclosure rates are all in Nevada, including one representing a neighborhood in North Las Vegas.

The high concentration of foreclosures in those areas is bringing local home prices down. Once they’re foreclosed upon, the homes are sold by lenders at a discount to clear them off the books. When the share of distressed sales reaches a certain threshold it forces non-distressed sellers to lower prices to compete, especially since many of the foreclosed homes are so new. [CNN]


Related Articles

arrow_forward_ios
The threat of eviction hangs heavily above immigrant families who have lost work as a result of the coronavirus pandemic. (Getty)

Eviction bans don’t always protect the most vulnerable

Eviction bans don’t always protect the most vulnerable
Governor Andrew Cuomo and New York Chief Administrative Judge Lawrence Marks (Getty)

New York courts put the kibosh on foreclosures

New York courts put the kibosh on foreclosures
Toby Moskovits, Fortress managing director Spencer Garfield and the 215 Moore Street Site (Moskovits by Sasha Maslov)

Toby Moskovits’ Bushwick Generator thrown into receivership

Toby Moskovits’ Bushwick Generator thrown into receivership
The number of mortgages in forbearance continues to climb though servicers say they are fielding fewer calls for help from property owners.

TRD Insights: Mortgage forbearances keep climbing

TRD Insights: Mortgage forbearances keep climbing
Clockwise from top left: Poughkeepsie Galleria, Crossgates Mall, Destiny USA and Walden Galleria (Credit: Google Maps; I Love NY; Visit Buffalo)

After Palisades Center, 4 more Pyramid Group malls head to special servicing

After Palisades Center, 4 more Pyramid Group malls head to special servicing
SoFla prepares for flood of foreclosures and evictions after governor’s freeze

SoFla prepares for flood of foreclosures and evictions after governor’s freeze

SoFla prepares for flood of foreclosures and evictions after governor’s freeze
Governor Andrew Cuomo (Credit: Getty Images, iStock, and Pixabay)

Cuomo’s executive order tells banks to give homeowners a break

Cuomo’s executive order tells banks to give homeowners a break
Caught up in a dozen recent lawsuits, Brooklyn developer Toby Moskovits blames her firm’s debt troubles on “collusion” and a “personal vendetta” (Illustration by The Real Deal; Moskovits by Sasha Maslov)

Creditors are banging on Toby Moskovits’ door

Creditors are banging on Toby Moskovits’ door
arrow_forward_ios

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

Loading...