NYC Foreclosures, when and how.

I have been a staple at NYC foreclosure auctions since 2003. I have attended over 2000 such events since 2003 by my estimation. My position as a REO broker gives me a unique perspective on the vacuum the lack of foreclosures is creating. The last foreclosure in NYC was held on March 13 in Queens Supreme court on Sutphin Blvd. in Jamaica. We have now officially gone 6 months without a foreclosure. Some may think this is a great thing. Keeping people in homes during the pandemic, but this does not tell the whole story. If banks do not foreclose, they cannot lend. Simple as that. The majority of NYC foreclosures are not owner occupied. Another big block are vacant and deteriorating. Furthermore, NYC has lost an enormous revenue stream through the tax lien program. The majority of these properties are not residential and or occupied. We must find a way to begin the foreclosure process and address the backlog of cases. If we ignore the subject banks will tighten credit, the urban blight that vacant and abandoned properties cause will continue, and our our cities revenue stream will dry up. How do we do this safely? If you have attended a Kings County foreclosure you know the room is jam packed with 200-300 people. Opening up in the same format is not likely until the end of 2021. We cannot wait that long. Can we limit the number of attendees? The job of the court as overseers of the process is to ensure the highest price is attained. This protects the rights of the foreclosed party if surplus funds are achieved. In layman's terms: If an individual owes $200,000.00 on a home and the home sells for $250,000.00, there is a $50,000.00 surplus which goes directly to foreclosed property owner through a court process. Thus if we limit attendees the sale may realize only $210,000.00 and we have taken $40,000.00 out of the property owners pocket. Or if total debt is not achieved we would be taking the funds out of the plaintiffs pocket. One way of clearing the backlog is to hold mass multi day foreclosure events in arenas that would allow hundreds of cases to be foreclosed and hundreds if not thousands to be attend. Another more logical format would be on-line or virtual. This I feel is the future. So why not now. The system would be complicated. The court system would have to partner with a financial institution to hold the massive amounts of deposits. But if we figure out the logistics we would be taking a giant stride to ensuring the stability of the system. It would also solve many of the other issues the in-person foreclosure system causes. Specifically collusion and bidders not fulfilling obligation. Also, we open up the bidding to a whole country of investors and buyers. The transition has to begin today. The plan must be in motion. We have to demand the court system share its vision for opening the foreclosure auction process.