Out With the Old Distress, In With the New Foreclosure Normal
BY DAREN BLOMQUIST, EXECUTIVE EDITOR
EDITOR’S NOTE: This is part one of a two-part series investigating the distressed market for 2017.
Luana Malavolta laments the vicious cycle of deferred distress weighing down the Bronx housing market where she works as a real estate broker.
“I have 20 buyers sending me the same frigging house that really isn’t for sale,” she said, referring to pre-foreclosures that have been lingering in distress for years without finishing foreclosure or listed for sale. “It begins with the banks,
and it begins with the pre-foreclosures. … No one’s evicting the person who is squatting in their own house.” New York properties foreclosed in the fourth quarter of 2016 had been in the foreclosure process an average of 1,283 days — 3.5 years — the third longest of any state behind Utah and New Jersey, according to the ATTOM Data Solutions 2016 Year-End Foreclosure Market Report. Biggest Backlogs of Distress The report also shows that as of the end of the year, 31,838 loans actively in foreclosure in New York were originated between 2004 and 2008, the second biggest backlog of bad loans tied to the last housing bubble of any state and representing 56 percent of all loans actively in foreclosure in New York.
Biggest Backlogs of Legacy Foreclosures Click on map to view interactive nationwide heat map
2004 to 2008 Share of Total Loans in Foreclosure 25% 76%
ATTOM Data Solutions • P1
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