Sorry I am just seeing this. NYC REO market is far from slim (maybe it is in Manhattan). Brooklyn, Queens, and Long Island have an enormous amount of foreclosure activity because the with the high demand these areas were overbuilt during the real estate bubble. Now these properties are coming back as foreclosures and investors are buying them up with all cash transactions. Homeowners that happily paid 625K for a duplex in Queens are short selling them to investors for 275-325K.
The foreclosure process is slow because the courts are so backed up and favor homeowners. They are letting delinquents stay in properties for long time periods. However, once the REO hits the market we are averaging 30-45 days max marketing period to get them sold.