Foreclosed Homes Foreclosure Surge in New York City in July- By: John Cutts
A spike in foreclosure activity was reported last month in New York City. This prompted industry analysts to point out that a growing number of homeowners are at risk of losing their properties to foreclosures.
According to market data, the number of homeowners who are in some kind of foreclosure process totaled 2,517 last month, representing a 15 percent increase compared with June and July of last year.
Industry analysts, noting the rise in the number of foreclosed homes, said that the foreclosure problem in the city is far from being over. The rise in foreclosure numbers came after a lull in which the state of New York implemented a law that mandated banks to offer troubled borrowers a grace period of 3 months before they start a foreclosure proceeding.
Analysts said that the law helped slow the pace of foreclosure, delaying what they claim is the inevitable. And now, the effect of the law is waning and whatever reservoir it has created is starting to overflow, they added.
Nationwide, one out of 355 homeowners received at least one foreclosure filing in July, either a notice of default, notice of scheduled foreclosure auction or bank foreclosure. Citywide, one out of 1,321 homeowners is in some kind of foreclosure proceedings.
Leading the areas in New York City with the most number of foreclosure houses is Queens with 939, an increase of 11 percent compared with June and 1 percent from the previous year.
The highest ratio of foreclosure was posted in Staten Island, with one out of 667 properties in some kind of foreclosure proceedings. The borough posted a total of 267 filings, representing an increase of 6 percent from June but a drop of 8 percent from July of last year.
On the other hand, an increase in filings was posted in Manhattan last month. The area is dominated by condominiums and co-ops and historically had the lowest foreclosure activity in the city. The number of potential foreclosure properties in the area reached 319, an increase of five times compared with June and July of the previous year.
Default notices, the initial step in the foreclosure proceedings, received the highest postings last month in the city, with 2,183, up by 17 percent from June and 31 percent from the same month in 2008.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.