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New York Home Foreclosures Persist in Multifamily Sector

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By : John Cutts    99 or more times read
New York home foreclosures continue to surge in the multifamily sector as more and more owners of affordable housing complexes face severe financial troubles, particularly in Brooklyn and in the Bronx.

According to Harold Shultz, senior member of the Citizens Housing and Planning Council, there are around 100,000 apartment units across New York City whose owners are delinquent or are already facing foreclosure lawsuits.

Rafael Cestero, head of the New York City Department of Housing Preservation and Development, more than 10 percent of the 1 million rents-controlled apartments in the city are in severe financial distress and more than 25 percent of these distressed buildings have deteriorated sharply since the start of the downturn because of lack of funds to do routine maintenance work and make needed repairs.

Recently, the decision of a team of investors to give up ownership of the 11,000-unit Stuyvesant Town and Peter Cooper Village, the largest affordable housing complex in the entire city of New York, when they could not raise money to pay their loans, was a sharp blow that highlighted the severe problems of affordable housing owners in the city.

Last year, the pace of New York home foreclosures rose by 7.2 percent from 2008 and by 68 percent from 2007. Total foreclosure filings in the metro area covered by New York City, Long Island and Northern New Jersey increased to 84,054 filings, representing 1.14 percent of all households in the area. The foreclosure rate put the metro area 131st in a foreclosure chart that ranked 203 large metro areas.

The pace of home foreclosures in New York State also increased in 2009, but only by 0.67 percent from 2008 to 50,369 filings. The number, however, marked a jump of 31 percent from 2007. Nevertheless, since the total filings represented only 0.63 percent of all households in the state, the foreclosure situation in New York was much better than 37 other U.S. states.

In January this year, the number of foreclosures houses in the state of New York which were taken back by lenders dropped to 518 units, based on a report from a California research firm. Foreclosure filings statewide dropped by 8.6 percent from December 2009 to 4,569 units.

However, compared to foreclosure activity in January last year, the pace of New York home foreclosures in January this year surged by 30.7 percent. The state of New York nevertheless was in the bottom of the foreclosure charts at 41st place in January.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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