Foreclosures Are Overwhelming Long Island

January 5th, 2009 | Tags: Foreclosures

Instead of improving, the situation in Long Island is worsening. Foreclosures are overwhelming this region. A cursory glance at a street in Central Islip will give a typical picture of ranch homes interspersed with colonial style houses, tree lined blocks, paved driveway and fancy front doors. One can even see glimmering Christmas lights. But closer look tells another tale. Inside the cupboards the foreclosure skeletons are rattling!

Many windows are boarded up and one house looks as if it has not been occupied for many years. A big tree has fallen on another house while the windows of another house are broken. The scene on Willow Street is repeated everywhere in Long Island.

Some of the worst mauled areas have different types of houses varying in price range. The demographic picture too is varied. Since 2006 the number has spiraled not sparing any community. In a three-block street on Willow Street five houses have been decapitated by foreclosure. The occupants have either left or been evicted. The lenders have set up the house for sale at heavily discounted rates. Nine other properties on the same street are in some stage of foreclosure. Three other houses are up for sale.

Between 2006 and 2008 the number of foreclosures have increased on Long Island. During the first eight months of the current year the banks filed 11,600 foreclosures involving both residential and commercial mortgaged properties. The total worth of the mortgages amounted to $4 billion. This has been calculated after taking into consideration a drop of in value of property since the drop of the crisis. The figures will indicate the intensity of the foreclosure in this area.

Experts are now analyzing that the foreclosure is now spreading its tentacles beyond sub-prime mortgages to the prime ones. Pat Ammirati of The Real Estate Report opines, “The areas that were usually immune aren’t immune anymore. You’re seeing it in all areas.” Pundits fear that more is yet to come.

Kathy and Philip Doras have strung up Christmas lights but they have been foreclosed upon since June this year. They are putting up a fight with a brave face. One year previously together they earned $130,000 and sailed through easily with expenses. But suddenly Kathy found herself without a job because of health problems. Philip began to earn less on overtime work and on top of that interests increased. This caused monthly mortgage payments to spike from $1,500 to $4,800! Foreclosure became inevitable.