Foreclosures drop in NYC, NJ amid rising property values

But lenders are still moving ahead with foreclosure auctions

New York /
Aug.August 03, 2016 06:00 PM

Speedier courts and rising property values are driving down the number of homes facing foreclosures in New York and New Jersey.

The number of pending foreclosures in New York City dropped by 5.8 percent in the first half of 2016, the biggest decrease seen since 2008, the Wall Street Journal reported. In New Jersey, the number of foreclosures fell by 28 percent.

Until now, New York and New Jersey have lagged behind other parts of the country in recovering from the post-2008 foreclosure crisis. At the beginning of this year, New Jersey and New York respectively had the first- and second-highest percentage of homes facing foreclosure.

Part of the reason for the recent reversal is the increase in property values. Lenders are now moving forward with foreclosure auctions, seeing that there’s a greater profit to be made from properties in traditionally lower-priced neighborhoods, like Jamaica in Queens. The second quarter of this year saw a 10 percent year-over-year increase in average New York City home prices. During the second quarter of 2016, the number of city properties scheduled for auction increased by 33 percent from the second quarter of 2015.

Another reason for the drop in pending foreclosures is that the courts are working through the backlog of cases at a quicker pace. In January, Justice Lawrence Knipel, the administrative judge for civil cases in Supreme Court in Brooklyn, shifted 6,000 foreclosure cases to one judge, from more than 20 who had failed to move the cases forward.

“Who wants to sign foreclosures? Not many people,” he told the newspaper. “Judges were taking their time.” [WSJ] Kathryn Brenzel 


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
(Super Gen via Twitter/ArjunKharpal, Getty)

Ready players: 5M-sf e-sports complex rises in Shanghai

Ready players: 5M-sf e-sports complex rises in Shanghai
News of President-elect Biden’s $1.9T stimulus plan held promise for employment and economic activity. (Getty)

Real estate stocks hold gains even as market doesn’t

Real estate stocks hold gains even as market doesn’t
Tommy Hilfiger and his recently sold estate in Greenwich, CT. (Getty, Janet Milligan)

Tommy Hilfiger’s Greenwich estate sells for $45M

Tommy Hilfiger’s Greenwich estate sells for $45M
Jenna Ryan was part of a group who flew on a private plane from Denton, TX, to Washington, D.C., with the intention of joining the protestors (Twitter.com/DotJenna)

Texas Realtor faces criminal charges for role in Capitol attack

Texas Realtor faces criminal charges for role in Capitol attack
Kirk Goodrich, president of Monadnock Development, is opposed to the bill sponsored by Bran Lander. (Getty, Monadnock Development)

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers
arrow_forward_ios

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

Loading...