Archive for the 'New York Articles' Category

The problem of foreclosure property at auctions is still not over for New York, according to housing advocates. A number of them, along with legal aids and some lawmakers, held a rally in front of the Bronx County Courthouse to urge the state government to reinstate the $15 million worth of funding that supports the Foreclosure Prevention Program.

According to advocates, a big number of homeowners are still in danger of losing their properties to Bronx foreclosed home auctions and other foreclosed property auctions in various areas of the state. They asserted that funds are needed to supply troubled borrowers with free legal assistance to help them negotiate with lenders and save their properties from foreclosures.

The budget for the state program which assists homeowners in keeping their properties out of New York foreclosed home auctions has been cut from the state budget for the 2011-2012 period, reports have revealed. Meanwhile, those funds that are coming from more than 100 different agencies are also set to run out at the end of the current year. Housing advocates have asserted that the withdrawal of state support will likely result in ending the foreclosure mitigation effort. They argued that legal assistance and foreclosure counseling initiatives are necessary in the area if it wants to control further increases in foreclosure numbers.

Housing market analysts have reported that, currently, more than 3,400 properties are in danger of being sold as foreclosure property at auctions in the area of Bronx alone, ranking the borough second statewide in terms of highest number of pre-foreclosure properties. Supporters of homeowners in the region have petitioned the governor's office to reinstate the funding to help these homeowners and other troubled borrowers in various areas of New York.

They also warn state officials that the housing market crisis is not yet over and that the state has only gone through one-third of all potential foreclosures. They further argued that vacant properties are increasing in the region, primarily because of foreclosures, and this will result in neighborhood deterioration and loss of revenue taxes for the state. New York has reportedly cut down appropriations for the program in an effort to lower the budget deficit.

Homeowners who were able to save their homes from becoming foreclosure property at auctions also participated in the rally. Some of them have asserted that lawyers working for the program were able to help them negotiate for a reduced monthly payment which saved their homes.

Labor unions in New York City have taken steps to help alleviate the problems of foreclosures and REO properties in the city. Local reports reveal that two unions have told lender JPMorgan Chase that they would campaign to have their pension funds sell their Chase stocks and bonds unless the lender exerts more effort to help troubled homeowners.

According to reports, the plan was part of a New York Communities for Change initiative designed to encourage lenders to modify loan mortgages to lower the number of homes offered at New York foreclosure auctions. Officials from the union have reportedly revealed that Chase was chosen because it handles a huge number of home loans in the area. The lender has allegedly turned down a big number of loan modification applications.

The unions' officials also stated that they will collaborate with community leaders to convince investors to divest Chase assets if steps are not taken to help borrowers in danger of losing their properties to foreclosure auctions in New York. The two unions, United Federation of Teachers and Transport Workers Union, have a combined worth of over $300 million of pension funds invested in Chase.

According to local housing industry experts, it is unsure whether the effort will help the city in its problems with foreclosures and REO properties as the pension boards need to agree with the campaign first. In addition, a Treasury Department report issued last December showed that Chase has granted permanent modification to 34% of its mortgage holders; a figure that, on average, is the same as other banks.

Meanwhile, union officials have claimed that majority of borrowers who applied for a modification at Chase have been turned down and that most of them lost their properties to public foreclosure home auction listings. They estimated that only around 6% of the more than 1,000 homeowners who applied for a permanent modification during the period July 2008-December 2010 have been approved.

In response, a Chase spokesperson has stated that the bank has done everything it could to help troubled homeowners and contribute to solving the problem of the city with foreclosures and REO properties. The lender also stated that it has opened several centers in the state to provide counseling services.

Those who are into foreclosure investing might be interested in the latest moves made by New York City authorities to tighten rules on distressed property housing code compliance. According to local reports, the initiative introduced by Mayor Michael Bloomberg is designed to identify distressed properties before they can create health and safety hazards to residents.

The program is also meant to prevent unsold properties, including those offered at Bronx foreclosure auctions, from causing neighborhood blight. According to local officials, the program will use tax, bank and home code violation data to identify residential properties that are in need of attention and help. Local authorities also revealed that tenant groups will contribute to put the program in place.

According to housing market observers, a big number of properties offered at New York home auctions does not get sold and might stay in the market for quite some time. Prior to the introduction of the program, which will be called Proactive Preservation Initiative, these properties are not identified until a complaint has been filed. The latest effort will not wait for any complaint but will actively seek out these properties.

The latest effort is not only of interest to property owners and residents, but also to homebuyers and people involved in foreclosure investing. According to authorities, most of these neglected properties go unreported, with neighbors and tenants opting to wait until the condition of the building and its effects on the community have gotten worse before they file a complaint. Under the new initiative, once properties in need of attention have been identified, a group of inspectors will be sent to the place to examine the premises.

Authorities reveal that if any of the unoccupied properties, including those that have been offered at house foreclosure auctions, has been found to have violated any code, steps will be taken to enforce rules. Part of the method to ensure compliance is an offer of financial counseling and issuing of preservation loans.

For worst case scenarios, an ownership transfer might be demanded, authorities have revealed. They also stated that residents, property owners and even homebuyers and people in foreclosure investing, should be aware of the new program and what it aims to do.

Properties sold at bank foreclosure auctions will likely increase in the coming fourth quarter until the first half of 2011 as the number of delinquent homeowners continue to rise in the U.S. Nationwide increase is relatively slow, but states in the Northeastern region of the country posted some of the highest increases in loan delinquency rates for the 2010 third quarter.

Those who have attended Rochester foreclosure auctions will likely know that dwellings like single family houses, duplexes, fixer uppers and apartment buildings are the most common residential structures offered in these events. But the popularity of mobile homes might soon increase the number of this type of residences in New York auctions.

A recent effort launched by a group of tenants might have significant implications on Staten Island foreclosure auctions and on the rest of the foreclosure market of New York City. The group has demanded that the bank which owns the foreclosed building be made liable for repairs needed by the property.

Rents are still unaffordable to many, especially to minimum wage earners in Brooklyn, despite the relatively high number of vacant units at buildings repossessed through Brooklyn foreclosure auctions.

We usually do not hear much about Staten Island foreclosure auctions compared with other metropolitan areas in the U.S. This is mainly due to the fact that the greater part of New York, including Staten Island, was able to ride out the foreclosure tide without too much damage on its housing market.

A beautiful three bedroom ranch house being sold in a foreclosed home auction in the Hamptons is a sign of the times.

Mirroring the foreclosure trend nationwide, two counties in New York have also experienced a rise in repossession homes filings for the first six months of this year.