Homes valued in the millions are being bought and sold every week at foreclosure auctions across New York City, often for far less than their true market value, according to the Gothamist.
Yet despite the city’s size and diversity, a review of foreclosure auction data by Gothamist shows a strikingly familiar pattern. One- and two-family homes sold at auction so far this year are heavily concentrated in southeast Queens neighborhoods such as Jamaica, Springfield Gardens as well as in parts of central and south Brooklyn, including Canarsie and East Flatbush, the news agency said.
Those findings align with a report released last month by the Center for NYC Neighborhoods, which found that foreclosure filings across the city nearly doubled in the first half of the year compared with the final six months of 2024. Most of the affected homeowners were concentrated in the same Brooklyn and Queens neighborhoods.
Historically, these areas have been home to large numbers of Black homeowners, with Latino and South Asian residents making up a growing share of the population. The neighborhoods were also among those hardest hit during the 2008 mortgage crisis, when predatory lending practices, high-interest loans and rising unemployment left many residents vulnerable to foreclosure, the news agency reported.
Housing advocates and public policy experts say the latest data underscores the lasting effects of that crisis and highlights the financial instability that continues to threaten low- and middle-income homeowners across the city.
According to the Center for NYC Neighborhoods, the loss of homes in these areas is accelerating displacement and deepening economic inequality, particularly in working-class communities of color.
Using court records and data from the real estate website PropertyShark, Gothamist identified 335 one- and two-family homes sold at mortgage foreclosure auctions during the first 11 months of 2025. Each sale included a court-filed report submitted by a court-appointed referee.
The true number of affected properties is likely higher. Some sales are not yet reflected in court records, while others stall after auctions are held. Homeowners can delay foreclosure by filing for bankruptcy, sometimes just days before a scheduled auction and winning bidders occasionally withdraw, forcing properties to return to auction at a later date.
The analysis shows that a single ZIP code in Springfield Gardens, near JFK Airport, accounted for 23 foreclosure auction sales, the highest total in the city so far this year. Three additional ZIP codes spanning East Flatbush and Canarsie in Brooklyn and Jamaica in Queens, each recorded 17 auction sales.
Beyond the loss of homes, the foreclosure process itself can leave former owners financially harmed. A recent investigation by Gothamist and New York Focus found that some homeowners are deprived of tens of thousands of dollars after foreclosure because of how lenders and attorneys calculate outstanding debts. The same disputed calculation method appeared in several of the 2025 cases reviewed.
That investigation prompted State Senator Zellnor Myrie and Assemblymember Khaleel Anderson to introduce legislation aimed at standardizing debt calculations and requiring lenders to use methods that better protect homeowners facing foreclosure.
