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Brooklyn Home Foreclosures Marked Highest Pace in New York

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By : John Cutts    99 or more times read
The pace of Brooklyn home foreclosures in January was the highest in the entire city of New York, based on data released by a foreclosure tracking firm.

With 693 households in Brooklyn getting hit with default or foreclosure filings in January, the borough comprised 38 percent of the 1,825 foreclosure notices received by New York City residents in January.

The number marked a jump of 87 percent from notices received by Brooklyn residents in January 2009, although it marked a decrease of 8.5 percent from notices received in December 2009. In the entire city, the January 2010 number marked an increase of 35 percent from filings in January 2009, but a decrease of 9.3 percent from filings in December last year.

Over the past years, Queens has been the epicenter of New York City’s foreclosure crisis, but the worsening job situation has been pushing Brooklyn into the forefront of the housing crisis. The most battered Brooklyn neighborhoods are Bedford-Stuyvesant, Flatlands, Canarsie, East New York and East Flatbush.

Meghan Faux, head of the Foreclosure Prevention Project of South Brooklyn Legal Services, said that Brooklyn home foreclosures have spread into Sunset Park and in other neighborhoods where no resident was distressed in the past. She added that the major foreclosure factor was still toxic mortgage underwriting, although the high unemployment rate has been forcing newer batches of homeowners to default.

Brooklyn foreclosure counselor Stephan Dookeeram, who works with the Pratt Area Community Council, said that he has been seeing a faster pace of foreclosure homes listing because of job losses. Homeowners operating a second home as rental housing have also been losing these second homes to foreclosure because their tenants no longer have sources of income.

In another report, the pace of home foreclosure in New York slowed in January this year compared to the previous month, but still surged compared to foreclosure activity in January 2009. A total of 4,569 households received default or foreclosure notices, including 518 homes which were already taken back by lenders. The foreclosure situation, however, of New York State is better than the situation of 40 other U.S. states as it ranked 41st based on foreclosure rate.

According to housing advocates, including Michael Hickey, head of the Center for New York City Neighborhoods, foreclosure actions will step up in several areas before they plateau, especially in Hispanic neighborhoods in Bushwick, which contributed to the high number of Brooklyn home foreclosures in previous months.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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