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More Bronx Foreclosure Homes and Landlords Deep in Debt

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By : John Cutts    99 or more times read
The number of Bronx foreclosure homes is expected to rise as more landlords are finding themselves stuck in a quagmire of debts. And just like in other residential real estate markets across the country, the unsuspecting victims of the foreclosure problem are the tenants.

But sometimes, foreclosure brought relief to tenants of distressed properties. That is exactly what tenants of the apartment building Fordham Towers feel. The building's landlord took out the property from the affordable housing program.

The landlord then sold the building to a group of real estate investors who in turn borrowed heavily to fund the purchase of the building and also another property, the Robert Fulton Terrace.

The acquisition deal was just one of the many similar real estate deals in Bronx and across New York City in which a group of private investors would borrow millions of funds to purchase apartment buildings at prices too expensive if the rents could not be sustained.

When a group of investors took over Fordham Towers, conditions at the apartment building deteriorated. The number of maintenance employees was reduced from nine to three, servicing 168 apartments. The halls were not cleaned, rats proliferated, elevators broke down and tenants were forced to make use of insufficient hot water and heat.

Last May, owners of the apartments defaulted on their loans. This prompted lenders to start the process to put the property on Bronx foreclosure homes listings. The apartment building has joined a flood of similar foreclosures in the area.

In New York City, there are 3,221 apartment units currently in foreclosure. These units were foreclosed after they were bought by private investors and equity firms. According to data released by tenants advocacy group, Urban Homesteading Assistance Board, about 60 percent of foreclosed apartment units are located in the Bronx area.

The group estimates that 11,124 foreclosed apartment units in the city, including 6,635 located in Bronx, are at risk of foreclosure after they were purchased by private investors.

For Fordham Towers tenants, foreclosure brought a pleasant change. The receiver appointed by the court hired a new management and since then, the number of maintenance employees was increased, new security personnel were hired and maintenance and repair were implemented.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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