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Brooklyn Foreclosures Highest in New York City

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By : John Cutts    99 or more times read
Brooklyn foreclosures soared by more than 300 percent in November, based on a foreclosure report released by a real estate research company.

With 749 foreclosure actions, Brooklyn posted the highest number of foreclosures in New York City in November, more than triple compared to November last year and up by 38 percent from filings in October. Queens was the second highest, with 540 filings, up by 5.5 percent from November 2008.

New York City filings soared by 85 percent in November compared to the same month last year, with a total of 1,949 filings. The foreclosures also marked an increase of 7.7 percent from October filings.

According to Michael Hickey, head of the Center for New York City Neighborhoods, the city’s unemployment rate of 10.3 percent has pushed a lot of homeowners into defaults and foreclosures. He added however that the November foreclosure rate in the city – one foreclosure for every 1,706 homes – is much lower than other cities in the country.

Meanwhile, the financial services firm Genworth Financial reported that its loan servicers helped saved around $4.5 million of mortgages from becoming Brooklyn foreclosures within the one-year period from October last year to September. The saved mortgage loans represented 25 percent of all mortgages rescued in New York City.

Statewide, Genworth helped save a total of $104.55 million in mortgage loans from foreclosure filings. The average amount saved per homeowner was $175,000, according to Genworth executive Alan Goldberg.

Goldberg added that 91 percent of all Genworth mortgage rescues enabled homeowners to keep their homes and to restore their mortgage accounts into current status. Nine percent of homeowners had to move out of their houses, but they were able to avoid foreclosures and keep their credit records generally clean so they can take out home loans again when their finances improve.

The Genworth executive also reiterated that all loan workouts were conducted without cost to borrowers.

Another bank executive who has been expressing his bank’s achievements in loan modifications in Brooklyn and other parts of New York City is Citigroup chief executive Vikram Pandit, who said that the foreclosure prevention ratio of Citigroup in the city is 76 to one, higher than its nationwide foreclosure prevention rate of 12 to one.

Pandit cited the large number of Citi branches in the city where homeowners can just walk in and ask for help and the partnerships forged by Citi with nonprofits and community groups in the city.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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