The government tax credit offered to U.S. home buyers helped stabilize the housing market in the first half of 2010. Although the improvement was temporary, it still provided some good results as home buyers flocked to the market and cut down the number of foreclosed properties as they took advantage of the offered credit. Now, a new rule in New York is expected to again cause a temporary lull in foreclosures.
The number of filings related to Brooklyn foreclosures, NY and foreclosed properties in other areas of the state declined during the first two weeks of December following the implementation of a rule that requires lawyers who represent lenders to provide affirmations that attest to court submission accuracy. The rule was implemented on October 20.
The number of foreclosed homes for sale in New York is expected to be lower for the rest of December and until the early part of 2011 as lenders and their lawyers try to familiarize themselves with the new rule. During the week that the rule was announced, 797 home foreclosure filings have already been submitted in the state. In the week of December 6 to 12, only 100 foreclosure-related filings were made.
Just like the government tax credit, the new rule is projected to result in temporary market stability where foreclosures will be fewer compared with the weeks prior to the implementation of the rule. According to housing market observers, this will last for only a few weeks and foreclosures will again continue once lawyers become more familiar with the requirements. Meanwhile, the impact of the rule is being seen clearly in areas of New York where lenders are most keen to pursue foreclosures.
In Suffolk County, foreclosed properties on sale traditionally number by the hundreds. In the week preceding the announcement, 274 filings were recorded. This dropped to six following the announcement of the rule, while in Brooklyn, the number declined from 53 to two between the announcement week and the week before it.
Analysts, however, have stated that this is just something temporary, like the impact that the government tax credit had on home buying figures during the first half of the current year. Foreclosures are expected to continue within six weeks at the most.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
Notice: In accordance with FTC guidelines, we state that RealEstateProArticles.com has financial relationships with some companies and may be compensated if consumers choose to buy, subscribe or take any action to a product or service via the links on our website. Occasionally, we receive free access to review a product or service. We do not accept compensation in exchange for a positive review. These reviews are strictly the opinions of the author.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites