Foreclosure Auction Report Reveals Uptick in New York Mortgage Defaults

While many experts report an increase in New York mortgage activity throughout the state, a new study shows problems for those with existing home loans.

Here are the finding from PropertyShark.com, a real estate data site, in its quarterly new residential foreclosure report covering New York City.

- Number of New Foreclosure Auctions: There were 425 new residential foreclosures in New York City (five boroughs), an overall decrease (-21%) in new foreclosures in the current quarter from the second quarter of 2006 (538 foreclosures).

- Foreclosure Auctions per Household: Of the five boroughs, Staten Island had the highest rate of foreclosure auctions per household in Q3 2006, about twice the rate of Brooklyn and over 10 times the rate of Manhattan.

- Average Lien Amounts: Manhattan had the highest average lien per property in foreclosure at $330,728. The Bronx had the lowest average lien at $226,995.

- Foreclosure Auctions by Neighborhood: In NYC, 17 of the top 20 zip codes for foreclosures were in Queens and Brooklyn.

- Lis Pendens (Pre-Foreclosures): The number of residential pre-foreclosures in NYC for the quarter (1468) dropped 10.92% from the second quarter of 2006 (1648), but increased 20.33% from the third quarter of 2005 (1220).

“The decrease in new foreclosure auctions in New York City since the second quarter of 2006 is definitely counter to popular perception of the housing market, but foreclosures are just one factor in determining the economic state of real estate,” stated Ryan Slack, chief executive officer, PropertyShark.com.

“Comparing NYC Lis Pendens in Q3 2005 and Q3 2006, we see an increase in defaults [on mortgage loans] across all boroughs; this may be indicative of a future increase in foreclosure rates City-wide.”