This issue brief summarizes home foreclosure risk patterns across New York State, and updates our 2012 report, Foreclosures in New York: What’s Really Going On?, and 2014 brief, Foreclosure Risk in New York State.
New York State requires mortgage servicers to send pre-foreclosure notices to homeowners, at least 90 days before commencing a foreclosure action. New Economy Project analyzed pre-foreclosure notice data and found that, in 2017:
- Across New York State, mortgage servicers filed a total of 167,848 pre-foreclosure notices.
- Almost half of these notices were sent to homeowners in New York City (24.1%) and Long Island (24.6%). Foreclosure risk was also high in Buffalo, Rochester, and parts of the Hudson Valley; combined, homeowners in these areas received almost 30% of all pre-foreclosure notices.
- Nine of the ten zip codes with the highest number of pre-foreclosure notices are neighborhoods of color.
- Residents of New York City neighborhoods of color received pre-foreclosure notices more than twice as often as residents of other neighborhoods, controlling for the number of owner-occupied housing units.
- Thousands of New Yorkers of color continue to bear the brunt of the subprime lending crisis. Almost two-thirds (65.4%) of all pre-foreclosure notices sent to people in New York City neighborhoods of color concerned loans made between 2002 and 2007.