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New Yorkers Stand Up & Cheer: We’re #39!
U.S. foreclosure filings climbed to a record in the third quarter as lenders seized more properties from delinquent borrowers, according to RealtyTrac. A total of 937,840 homes received a default or auction notice or were repossessed by banks, a 23 percent increase from a year earlier. According to Standard & Poor, the pace of prime and so-called alt-A loan defaults is accelerating as subprime defaults slow. Prime loans are those made to borrowers with the best credit records. Alt-A loans are riskier loans made without requiring income documentation from borrowers. The trade refers to these as “liar loans.”
Nevada had the highest foreclosure rate: one in every 23 households, or almost six times the national average. A total of 47,925 Nevada homes got filings, up 10 percent from the previous quarter and 59 percent from a year earlier.
Florida had the next highest total, with 156,924 filings, up 23 percent from a year earlier. Arizona had 50,342 filings, up 25 percent from the same period a year earlier. Nevada had 47,925, up 59 percent. Illinois had 37,270, a gain of 30 percent; and Michigan had 37,026, an increase of 22 percent. Georgia, Texas, Ohio and New Jersey rounded out the top 10 states with the most filings.
New York secured bragging rights of #39 out of 50.
As more homes get foreclosed, vacancy rates will continue to increase, and rents will spiral ever downward. This, of course, is bad news for multifamily owners, as their property values will further decline. They will have to lower rents for tenants who renew, and new tenants alike, in order to keep their buildings occupied.
You can see the latest rent and vacancy numbers for the New York metro area by clicking here.
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