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

Table 16
Percentage of Foreclosed Properties
with Additional Liens, by Community
Community
Foreclosed
Properties
Ellicott-Masten 70
North East 64
Riverside 55
South Buffalo-River 50
West Side-Central 48
North Buffalo-Elmwood 43
East Delavan 41
East Side 37
Buffalo total 50
Sources: Erie County Civil Court records;
author's calculations.
For instance, the two lowest income communities were at either end of the
spectrum, with Ellicott-Masten showing additional liens on 70 percent of foreclosures
and East Side demonstrating just 37 percent. The North East community--exhibiting one
of the highest foreclosure rates in the study--had a percentage of properties with
additional liens similar to that of Ellicott-Masten, which had a low foreclosure rate. So
while the presence of additional liens might indicate the financial situation of a
community’s distressed homeowners, as well as their ability to forestall foreclosure, it
appears to be just one factor among many contributing to foreclosures in Buffalo.
Foreclosure Judgment Amount
Another measure of the burden faced by borrowers is the amount owed to the lender. In
particular, if this amount is high--perhaps even exceeding the value of the property, if
sold--foreclosure may be unavoidable. The foreclosure judgment amount consists
primarily of the outstanding balance on the mortgage loan’s principal, and includes owed
interest and attorney and court fees. Together with such factors as the condition of the
housing market and homeowner finances, the size of this debt may suggest why
distressed homeowners were unable to prevent or were inclined to allow foreclosure.
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