Financial District Foreclosure Pipeline Includes a Whopping 26 Units, Surprised?

After reading this very interesting article from the Battery Park Broadsheet detailing 8 condos in a state of "pre-foreclosure" in Battery Park City, we decided to see what was going on in the Financial District, an area that we love to blog about and that we were anticipating would have some freshly minted pre-foreclosures due to the frenzied 2007 sales prices of many new construction units.

When we consulted RealtyTrac (the national foreclosure database), we discovered kind of a mixed bag of data. In all of FiDi, there are a total of 26 foreclosures in the pipeline, several at some very popular buildings including 56 Pine, 15 Broad, 80 John, 88 Greenwich (the Greenwich Club Residences) and 1 Wall Street Court (aka the Cocoa Exchange) . Of these pre-foreclosures, 13 were filed in the last 5 months, with the most recent notice going out on May 26 to an unfortunate condo owner at 56 Pine.

We were most surprised by the three pre-foreclosures on file at the Greenwich Club (88 Greenwich), a relatively new FiDi building. One unit in pre-foreclosure, purchased for the seemingly reasonable price of $530,000, was bought in the fall of 2007, not even two years ago.

Of course, not all of these units will end up in foreclosure. As RealtyTrac notes, "pre-foreclosure" or "lis pendens" simply indicates that a bank has filed initial documents indicating that a borrower is not making payments. Should the borrower start paying the bank again (or sell the unit), the loan will no longer be in a "lis pendens" state.

Will we see 15 Broad St. Starchitecture units at auction? Who knows, but it's definitely a trend to keep an eye on.

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