PropertyShark’s Q1 foreclosure report shows NYC’s distressed property sector in a mild downtick, slipping 3% Y-o-Y to 399 first-time filings, while pre-foreclosures inched down a near-negligible 1% Y-o-Y to 1,538 lis pendens. Still, this meant Q1 2026 was the slowest first quarter in three years for both NYC pre-foreclosures and foreclosures.
But the muted decline seen at the city level was not reflected at the borough level, with trends diverging significantly. As Bronx foreclosures rose and Brooklyn sharply slowed, the Bronx foreclosure market surpassed Brooklyn’s for the first time since late 2017.
Meanwhile, Manhattan quietly became the city’s least active foreclosure market for the first time in nearly four years as Staten Island also reached new peaks.
See more highlights:
- Bronx foreclosures (67) rose 24% Y-o-Y, setting a new post-pandemic record high;
- Brooklyn foreclosures (62) dropped below Bronx caseload (67), also fueled by 45% Y-o-Y decrease in Brooklyn filings;
- Two Bronx homes ranked among NYC’s top five most expensive foreclosures in Q1;
- Queens (167) stayed nearly flat year-over-year but still totaled more foreclosures than Brooklyn, Manhattan and Staten Island combined;
- First-time filings more than doubled in Staten Island (58), with the borough marking its most active quarter since mid-2022;
- Manhattan pre-foreclosures jumped 31% Y-o-Y to 68 lis pendens, but remained the city’s slowest pre-foreclosure market; lis pendens in the Bronx declined 13% Y-o-Y.
To learn more about the Bronx foreclosure market in Q1 2026, dive into our full PropertyShark report here.
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