If you live in New York, you may be familiar with Billionaire's Row. The stretch of real estate near 57th Street and Central Park has been struggling recently. There have been two apartments in One57, a large building in the row, foreclosed on in the last two months, as of a June 26 report.
The first foreclosed unit sold for $21.4 million in July 2015, Now, this property is going to the auction block. It was purchased for $50.9 million and still has a $35.3 million mortgage on it.
These foreclosures are a sign that the row of expensive homes are in trouble. The Manhattan real estate market over $10 million has cooled, making it harder to find investors. There are many units available with no potential buyers, and there has also been increased scrutiny by the U.S. Treasury Department some say may be to blame for the lack of sales. New regulations on capital outflow to other countries has also made it difficult for foreign investors to purchase the homes as investment properties in America.
If you are living in New York and fear that foreclosure might be in your future, know that there are options you can consider first. Sometimes, when a mortgage is too far behind, foreclosure becomes the only option. Prior to that, you do have a chance to make changes that can help you keep your home or mitigate the damage to your credit score. Your attorney can help you determine what the best patch forward is for you if you find yourself in this position.
Source: Business Insider, "New York City's 'Billionaire's Row' is dead — and a record-breaking foreclosure could be the 'nail in the coffin'," Dennis Green, June 26, 2017