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Flipping Homes and Foreclosure Problems Starting to Rise in NY

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By : John Cutts    99 or more times read
The number of foreclosed properties available to investors flipping homes might be higher in some areas of New York than analysts initially perceived. According to data presented by a local agency that assists troubled homeowners, the number of default notices has steadily risen since September 2010.

Foreclosure listings in Bronx and in other areas of the state have increased since the second half of last year, although not as much as in other U.S. metro regions. Realtors, however, have stated that the gradual increase shows that the state is not immune to the foreclosure crisis that has hammered many cities and counties in the country. In Albany, HomeSave Coalition, an agency designed to help troubled borrowers, has reported rising number of pre-foreclosure filings.

The agency reported that more and more properties are in danger of falling into New York foreclosure listings. Officials have reported that in September 2010, a total of 993 households in the areas they cover received a pre-foreclosure letter. This increased in January of 2011, when 1,912 homeowners received a notice. Majority of those who got notices were from Albany, although HomeSave reported that there were also homeowners from Saratoga and Rensselaer who received the notes.

Although the state of New York and its local areas like Albany have some of the lowest number of investors flipping homes because of the relatively few foreclosed properties in the area, this does not mean that the housing market of the region is not suffering from the foreclosure crisis that has hurt most of the country's states and cities.

In 2010, Albany ranked 199th among 206 U.S. metro areas in terms of real estate foreclosure listings. The ranking is way below the ladder, but analysts stated that some foreclosures were not included in the area data since the ranking only considers court filings. They also stated that the pre-foreclosure notification is a better way to gauge the rate of foreclosure in the whole state.

Most of the state's housing industry analysts believe that housing data is being inflated or deflated by government programs, rapid change in ownership due to flipping homes and the shadow inventory. They stated that once the backlogs are cleared, true numbers will show a higher total.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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