New York State Foreclosure Numbers Increasing

August 5th, 2008 | Tags: Foreclosure

The New York State foreclosure numbers are increasing. The State Commission of Investigation reported that foreclosure houses have increased by as much as 14% in New York State in the last few months as compared to 2007. In USA during the first quarter of this year, 2008, there were 14,002 foreclosure postings, compared to 11,832 during the last quarter of the previous year. Across New York State during 2007 there were 37,000 houses listed for foreclosure. This marked a 10% increase from the previous year of 2006 and a 55% jump from 2005.

In Broome County the ray of light is that during the first quarter of this year the foreclosure rate postings is modestly lower than the increase across the state. There were 70 listings marking a 2.9% rise in comparison to the last quarter of 2007.In the other southern tier counties too the rates are lower than the state filings. In Chenango County there was a 200% spike in foreclosure listings because of 6 filings noted in the first quarter in comparison to 2 during the last quarter of 2007. Tioga County recorded a 57.1% decrease in the foreclosure postings during the first quarter of this year by coming down to 6 from 14 noted during the last three months of the previous year.

The foreclosure mess is mainly due to the sub-prime risky mortgages that were contracted by the urban communities having low to modest incomes. Committee chairperson Alfred Lerner commented, “We are seeing foreclosures among New York’s sub-prime mortgage holders at alarming rates, a situation made far worse by unscrupulous appraisers and brokers.”

New York State authorities have been trying there hardest to stem the tide of foreclosures. A 90-day safe zone has been created for house owners who are at risk from foreclosures so that they get time to negotiate with the lenders. The new legislation also cracks down on fraudulent loan practices that were responsible for the foreclosure or more than 50,000 houses in the state till date.

However there is a demand for initiation of more strict laws to deter a repeat of the present crisis in future. It should be mandatory for brokers and appraisers dealing with mortgages to have licenses. The state could do well to take steps to provide for financial incentives to potential sub-prime mortgage seekers to attend financial counseling classes.