NYC foreclosures haven’t been this high since 2009: report

Lenders foreclosed on 859 properties in Q3

Rendering of 3 Sutton Place (Credit: CityRealty)
Rendering of 3 Sutton Place (Credit: CityRealty)

In case anyone was wondering why more and more big-name developers are raising distressed real estate funds: first-time foreclosures are at the highest level since the great recession.

Lenders foreclosed on 859 properties in the Big Apple in the third quarter, up 79 percent from a year ago, according to online real estate database Property Shark. The number of foreclosures increased by a staggering 112 percent in Brooklyn and rose 27 percent in Queens.

The previous peak was the second quarter of 2009, with 912 foreclosures.

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Elsewhere in the U.S., foreclosures have been declining for years and hit a ten-year low last year, Crain’s reported.

Developers Steve Witkoff and Michael Ashner recently launched a $150 million investment fund to buy distressed properties. Other investors like Delshah Capital and Madison Realty Capital have also set up funds that focus on acquiring distressed properties. [Crain’s] — Konrad Putzier