New York City Foreclosures Skyrocket! Real Estate Crisis Looming!
New York City Foreclosure Skyrocket! Experts Blame Rising Interest Rates And Skyrocketing Real Estate Values!
New York City foreclosures have skyrocketed and it now involves the billionaire class. It all started a year ago when Nigerian oil tycoon Kolawole Aluko, stopped making payments on his condo at One57. One57 is the crown jewel of Billionaire’s Row in Manhattan.
The June 2017 foreclosure marked the first foreclosure on Billionaires’ Row.
That same month, another lender seized a $50.9 million penthouse in the 75-story condo tower.
These two foreclosures at One57 were two of 3,306 homes throughout the city scheduled for auction last year. 2017 marked the highest level seen since 2009 according to PropertyShark. Brooklyn and Queens primarily drove the city’s 58% increase.
The high volume of New York City foreclosures is a sign another foreclosure crisis could hit Gotham. There are also other signs of potential trouble. Interest rates are on the rise. There is also a new massive crop of alternative lenders and subprime lenders growing.
Additionally, the Trump administration’s cloudy long-term plans for financial regulation remain unclear. At the federal level, the CFPB is being gutted by Trump appointee Mick Mulvaney.
This could shift the market’s current stability according to Jacob Inwald, the director of foreclosure prevention for the nonprofit Legal Services NYC:
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