More than half of NYC’s REO properties still owner occupied

TRD New York /
Oct.October 07, 2013 03:29 PM

More than half of the 4,475 bank-owned properties in the New York City metropolitan area are still occupied by their former owners according to a report from foreclosure research firm RealtyTrac. And in the five boroughs, that figure is more than 70 percent. Comparatively, the average nationwide is 47 percent.

Hedge funds and private equity firms are eager to acquire real estate-owned, or REO, homes — properties taken by the bank after failing to sell at foreclosure auction. But they are also reluctant to deal with the hassle of evicting former homeowners, according to the New York Post.

And though New York has a relatively small number of REO homes, the pace at which the REO homes are actually repossessed reflects a long timeline for foreclosures rather than an end to the financial crisis, the Post said. The foreclosure timeline in New York City is one of the longest in the nation.

“You have this very dysfunctional foreclosure process,” Daren Blomquist, vice president at RealtyTrac, told the Post.

However, there are benefits — for both sides — to the non-eviction scenario. Banks manage to avoid the costs of maintaining a property, while former homeowners get to live rent or mortgage-payment free. [NYP]Julie Strickland


Related Articles

arrow_forward_ios
Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

Home foreclosures dropped nearly 20% in Q3, report shows

Home foreclosures dropped nearly 20% in Q3, report shows

Manhattan’s 10019 zip code, which covers Midtown, Times Square, Herald Square and Midtown South, saw the most foreclosures in the borough with eight. (Credit: iStock)

Manhattan foreclosures soar 118%, driven by mortgage defaults

15 East 63rd Street and Oleg Cassini (Credit: Google Maps and Getty Images)

Oleg Cassini’s former UES headquarters faces foreclosure

Mayor Bill de Blasio and Frank Carone (Credit: Getty Images)

City tapped De Blasio donor to take over foreclosed properties

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Lenders in glass houses? Judge rules Maverick can’t foreclose on Chelsea property because it violated loan agreement

Foreclosure starts are up in 17 states and a number of major cities. (Credit: iStock)

Nationwide foreclosure rates continue to drop, but problem areas remain

The Bluestone Group's Eli Tabak and 90-02 Queens Boulevard (Credit: Eli Tabak)

Bluestone buys Queens building for $85M at foreclosure auction

arrow_forward_ios