New York Foreclosures have seen better days

3 March 2008

Author: admin Posted under Foreclosure homes

New Yorkers were hit by news in the last quarter of 2007 that said that one of the primary reasons behind a high number of New York foreclosures is dubious fees. As if the high interest rates of mortgage loans were not enough. According to a study conducted by Katherine Porter from the University of Iowa, it was found that most of the mortgages carrier a questionable fee, which can make loan servicing lucrative but foreclosures inevitable.

In 2007, there were a record numbers of New York foreclosure homes and this has brought into light the questionable practices by lenders. In a startling discovery, it was seen that lenders have been initiating the foreclosure procedure in many cases to take undue advantage of borrowers in distress. This is not an isolated incident and has taken place in the top cities of New York including Buffalo, Syracuse, Albany, Rochester, Jamestown, and Ithaca.

The counties of New York that were hit hard by real estate foreclosures include Nassau and Suffolk. These two counties faced the maximum number of subprime-loans related foreclosures and there were 9,450 foreclosure homes reported by the end of the third quarter of 2007.

In total, there were 549,000 neighbors were also affected. People who are living within 1/8th of a mile from a foreclosed home have been affected by the downfall in the value of their property. Nassau has seen a downfall of approximately $7,100, while Suffolk saw a downfall by $4,200 and this is on paper. So the real figures might just be higher than what we get to read everyday.

So the New Year has started with two major problems. The problem of higher rate of New York foreclosures seems to be driven by dubious fees. The second problem of higher number of New York foreclosure homes is driving the value of real estate in the near vicinity to an all time low. As a result, the problem has taken a bigger shape because foreclosures are not just affecting homeowners, they have started to affect the neighbors too!