UPDATE: Home foreclosures in New York City are surging, with the latest data revealing a troubling trend that threatens the stability of communities of color. A review of auction sale data indicates that 335 one- and two-family homes have already been sold at foreclosure auctions across the city in 2025, primarily concentrated in neighborhoods like Jamaica, Springfield Gardens, East Flatbush, and Canarsie.
This alarming spike comes as foreclosure filings nearly doubled during the first half of the year compared to the previous six months, according to a report from the Center for NYC Neighborhoods. The organization highlights that many affected homeowners are from historically marginalized communities, including Black, Latino, and South Asian residents. Christie Peale, Executive Director of the Center, stated, “These homes are overwhelmingly located in communities of color and working-class neighborhoods. When they are lost to foreclosure, it accelerates displacement and economic inequities.”
This year’s auction data starkly mirrors the fallout from the 2008 mortgage crisis, which similarly devastated these neighborhoods through predatory lending practices and high-interest loans. The most affected ZIP code, located in Springfield Gardens, recorded 23 foreclosure auction sales—the highest in the city. Meanwhile, areas like East Flatbush and Canarsie each accounted for 17 sales this year.
The implications of these foreclosures extend beyond loss of homes. A recent investigation by Gothamist and New York Focus found that former homeowners may face significant financial losses, sometimes being deprived of tens of thousands of dollars due to questionable debt calculations by lenders. This has prompted state Sen. Zellnor Myrie and Assemblymember Khaleel Anderson to introduce legislation aimed at standardizing debt calculations and protecting vulnerable homeowners.
Peale emphasizes that the ongoing rise in foreclosure filings represents the “quiet erosion of one of New York City’s most important sources of affordable housing.” As this situation continues to unfold, residents and advocates are calling for urgent action to address the systemic issues driving these foreclosures.
As the city grapples with this crisis, experts urge immediate attention to prevent further displacement and to support struggling homeowners. The urgent need for policy reform and community support is more pressing than ever, with many New Yorkers facing uncertain futures.
Stay tuned for updates as this story develops.
