Foreclosure Makes Its Move on Manhattan

"the proportion of Manhattan apartment owners facing foreclosure is very small in relative terms. Only one in 50,000 Manhattan residences typically winds up at a foreclosure auction, according to PropertyShark.com. That compares with one in every 526 homes in Los Angeles or one in every 4,300 homes in Queens"

It's only affecting speech therapists' own little spaces, so it can't be generalized to the Manhattan market.

Anyway, Steve, you live in Manhattan, so you have a level of not fully accepting what is going on, according to the article.

It's Truly Scrumptious that one in every 526 homes in Los Angeles winds up in foreclosure -- what's up with that place?

Steve,

Would like to get your opinions on what might happen to stock market/RE market short term and medium term after this bailout..

Or does it just all depend on if the Asian banks like it or not? If they shy away more after this.. I can see the "D" word

"the proportion of Manhattan apartment owners facing foreclosure is very small in relative terms. Only one in 50,000 Manhattan residences typically winds up at a foreclosure auction, according to PropertyShark.com. That compares with one in every 526 homes in Los Angeles or one in every 4,300 homes in Queens"

But I also noticed this...
"These figures do not include co-ops, which make up a majority of the for-sale market in Manhattan."

and this...
"Still, many Manhattan homeowners in trouble with their mortgages have an option that most people across the nation don’t have: because of a relatively stable real estate market, they can probably sell their apartments. "

Down 5% is one thing. But if we're down 10% or 15%, things change dramatically. Filings are more likely to becomg foreclosures.

Didn't the crisis in California start with just a few "outliers" as well?

Just so you know why the California figure is so high, California is a "title theory" state, whereas New York is a "lien theory" state. In a title-theory state, properties are owned by the bank and tenancy is granted to borrowers through a deed of trust. Therefore, it is very easy to foreclose because it is merely an eviction.

New York is a "lien theory" state, wherein title is held by the borrower, and the lender only has a lien on it. The foreclosure process is longer, and even longer in New York than other lien theory states, which allow for expedited foreclosure proceedings (Georgia, for instance).

Also, the city of Los Angeles is far larger than Manhattan (more than twice the population) with a much higher level of home ownership. Los Angeles County is the largest county in the country, whose population, at 10 million, is larger than New York City's.

Finally, the unwind process began there 3 years ago - it's just beginning here. But beginning it is.