Bronx property owners within 300 foot radius of foreclosed properties are worth on average $4,963 less than properties not as adjacent to such distressed properties according to a report issued by Independent Democratic Conference.
The report, which was launched by Senator Jeffrey D. Klein and the IDC, indicates that just 47 foreclosed properties are negatively impacting property values of 2,193 1-4 family homes in our borough are causing a whopping $10,615,211 in depreciation in value.
These so-called ‘Nightmare Neighbors’ are generally distressed and lacking general maintenance and upkeep and are oftentimes vacant with banks as the culprits for the condition of these properties.
According to the report:
A bank-owned or real estate-owned (REO) property is a property that has reverted to the mortgage lender after the home fails to sell in a foreclosure auction following a judgement of foreclosure. During the subprime crisis of the late 2000’s the housing market saw a significant slump and many homeowners found themselves incapable of maintaining their mortgages. This period saw a massive increase in the number of bank-owned homes as the number of foreclosures climbed and the number of buyers available dropped, leaving banks holding properties. Unfortunately, many banks failed to maintain their newly owned properties, spreading blight through many
These 47 foreclosed properties in The Bronx also have over 1,000 open violations with New York City Department of Housing Preservation and Development and with Department of Buildings as well which accounts for 41% of such violations of similar properties across New York City.
The report also goes on to indicate that minority communities are impacted at a higher rate as 89% of these properties across the city were located in minority or communities of color.
Read the entire report here (warning: PDF)