Residential Foreclosures in the City of Buffalo, 1990-2000 - Federal ...

over the added risk of financial harm to vulnerable segments of the population, but even
more troubling is the threat to the often struggling neighborhoods in which those
segments reside. Residential foreclosures in the central-city context frequently lead to
extended vacancies, property deterioration, and an accelerated decline in surrounding
home values.
In response to such concerns, the Federal Reserve Bank of New York’s Buffalo
Branch investigated residential foreclosure trends in Buffalo from 1990 to 2000. This
study provides a detailed account of our findings.
Objective
Our primary objective is to describe the context in which foreclosures took place over the
study period. To that end, we examine the recent rise in the number of foreclosures,
analyze the characteristics of the neighborhoods in which foreclosures occurred, and
broadly identify the nature of foreclosed loans. In doing so, we analyze Buffalo as a
whole and examine how the characteristics of foreclosure vary among the city’s
communities.
Because our analysis is descriptive, we do not attempt to explain the causes or
impacts of foreclosures. However, when supported by sufficient evidence, we draw
inferences and conclusions on observed patterns and trends. Additionally, although we do
not address the issue of causation, we seek to lay the groundwork for future research by
providing a thorough analysis of the context of foreclosure.
Finally, this investigation is largely a response to concerns raised by local housing
advocates. Accordingly, we hope it will provide them with useful information to assist in
their continuing work.
Methodology
We present a case study of foreclosures in Buffalo from 1990 to 2000. Our investigation
uses descriptive statistical analyses to evaluate a broad range of characteristics associated
with foreclosed properties over the period. It has five main components:
2 This finding is an estimate based on the number of foreclosure judgments in 2000 in the city of Buffalo
compared with the number of lis pendens filed in all of Erie County. A lis pendens is the legal notice of
initiation of foreclosure proceedings.
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