Is New York In The Midst Of A Foreclosure Meltdown?

It may have taken a bit longer than the rest of thepayments during the early part of the loan found
country but the sub-prime cloud is casting its shadowthey had bills they couldn't pay, and few options
over the Empire State.available to avoid foreclosure.
The entire state registered a rise in foreclosures ofFor those homeowners looking for help to stop
over 22% from July 2006 - July 2007. No place wasforeclosure in New York there is assistance available
spared it seems. In Queens the number ofthrough legitimate foreclosure prevention services.
foreclosure filings rose 126% in one month, whileThe government is showing signs of getting involved
Staten Island reported in with an increase of 102%.in a big way to try and stem the foreclosure tide.
Scarier still is these two boroughs weren't even theThere is also legislation being proposed by Sen.
hardest hit. that distinction belongs to Staten IslandCharles Schumer (D-NY) to increase the amount
which got hammered with a 184% increase ingiven to subsidy-assisted lenders such as Fannie Mae
foreclosures in the previous 12 months. All told theand Freddy Mac to enable them to buy and refinance
five boroughs showed an increase of 55% over theproperties to prevent foreclosure.
past year.New York foreclosures can take up to 15 months,
In the rest of the state the news is mixed, but threewhich is longer than most other states. You might
counties showed increases of over 30% with Nassauget blind-sided as lenders are not required to send a
County leading the pack at 82%.warning prior to initiating the foreclosure process as
The source of all the trouble is the same here as it isthis is not required in New York.
across the country. The sub-prime market at theIn the long run the situation in New York appears to
height of its popularity handed out home loans atbetter than most other states. The real estate
lower interest rates which jumped dramatically aftermarket has remained resilient, homeowners are far
they reached their reset periods. Those homeownersmore in foreclosure knowledge, and they are
lured in with the prospect of lower monthlyprotected by borrower-friendly real laws.