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Foreclosure Property Filings Surged in New York City

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By : John Cutts    99 or more times read
Foreclosure property filings surged in New York City in December, as unemployment continued to worsen and property values continued to decline.

In December, a total of 2,013 households in the five New York boroughs were given default or foreclosure notices, an increase of 3.3 percent from the previous month. A big percentage of the filings were default notices, indicating that more foreclosures will occur in the first months of 2010.

A higher number of Brooklyn foreclosed homes for sale is also expected in the coming months, as most of New York City foreclosure postings in December occurred in Brooklyn. A total of 757 households were put into the foreclosure process, marking a jump of 151 percent from filings in December 2008. Next to Brooklyn was Queens, which posted 629 foreclosures, up by 21 percent from filings in December 2008.

The foreclosure rate for the city was one out of every 1,652 units, which was much better than the nationwide average rate of one out of every 366 units.

For the entire year of 2009, a total of 20,228 households in New York City got hit with foreclosure property filings, equivalent to one out of every 164 households. The number marked an increase of 4.2 percent from filings in 2008.

Statewide, more than 50,000 households got hit with foreclosure postings in 2009, representing 0.63 percent of all households in New York State and marking an increase of 0.67 percent from 2008 and a jump of 30.2 percent from 2007. Compared to other states, the pace of foreclosure in New York was very low, with 37 other states struggling with worse foreclosure situations.

According to Jonathan Miller, chief executive of real estate firm Miller Samuel, the economic engine of New York has been sustaining the city and the state despite the housing crisis. However, according to him, if unemployment remains high, more defaults and foreclosures are expected.

Another foreclosure issue hounding New York is the rising number of homes repossessed by banks, indicating the sharp decline in properties getting sold at foreclosure auctions.

According to the Furman Center for Real Estate and Urban Policy, the number of real estate owned homes rose to 1,750 units in September 2009 from only 290 units in December 2006. Of about 12,000 homes that went into foreclosure in 2007, 12 percent were subsequently moved to foreclosure property auctions but were not sold off, ultimately ending up as bank repossessed homes.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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