As many as 100,000 New York City apartment units are in foreclosure or facing it. In many case, owners have abandoned properties, leaving tenants with no one to contact when problems arise. "What you see embedded in the underwriting of the loans is an expectation that cash flow will grow significantly, and where we find ourselves now is in a situation where, rather than that being the case, the cash flows have deteriorated," says Sam Chandan, president and chief economist at Real Estate Econometrics.

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