Trend in New York Repossession Homes Filings: Going Up
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.
According to a market report, Suffolk and Nassau experienced a significant increase in foreclosure filings from January to June of this year, earning them the third and fifth spots in the state foreclosure total, respectively.
The report showed that one in every 115 properties in Suffolk, including apartments, was in some kind of foreclosure proceedings. In Nassau, one in every 166 homeowners received at least one foreclosure filing.
All in all, Suffolk had 3,512 and Nassau 2,762 repossession homes filings, a 3 percent decline from the previous year for the same period but a whopping 63.6 percent rise from the second half of 2008.
According to industry experts, foreclosure activity in the second half of 2008 was artificially low because many lenders started giving a 3-month notice before they initiate foreclosure proceedings.
They said that the rise in foreclosure fillings occurred despite intensive efforts of the Obama Administration and the nonprofit sector to contain the number of repossession homes. Many factors have hindered the progress of the housing market recovery effort, foremost of them is the rising unemployment rate.
In Long Island, joblessness has worsened the struggle of many homeowners to pay their mortgages. Community Development Corp. of Long Island housing counselor Joan LaFemina confirmed that unemployment is one of the major reasons for the foreclosure crisis in the area.
Meanwhile, Richard Neiman, New York State Banking Superintendent, said that the Obama Administration’s mortgage relief plan has failed to make a dent on the foreclosure problem. He said that federal officials are planning to ask lenders and servicers on how well they are following the relief plan.
He also noted concerns about how homeowners take advantage of the programs. Last month, lending institutions posted foreclosure filings on 43 houses in Suffolk and 70 in Nassau. Foreclosure filings may include notices of default and auction and repossession of the property.
On the other hand, foreclosure related activity in the country grew even higher in the first six months of this year, with 1.53 million properties on the brink of becoming repossession homes.
