Bronx foreclosed homes for sale still dot many neighborhoods in the area because of unemployment, income reduction, collapse of small businesses and the failure of federal and state foreclosure prevention programs.
The foreclosure of several apartment and condo buildings has also been adding to foreclosure statistics in the area.
Because of the downturn, the unemployment rate in the area has reached 13.2 percent. According to data from the Census Bureau, 28 percent of residents in the Bronx are poor, making Bronx the nation’s poorest urban county. New York City has been trying to launch economic development projects in the area for years, but problems regarding local hiring and wage guarantees and labor union demands have been hindering the pursuit of these projects.
A study held by nonprofit Center for New York City Neighborhoods also found that state and federal foreclosure prevention programs have not been effective in stopping the rise in foreclosures in the Bronx.
Last year, the state passed the Foreclosure Prevention and Responsible Lending Act to require mortgage lenders to meet with borrowers before foreclosing on their homes, particularly if the borrowers took out subprime loans.
But so far the law has not prevented many homeowners from losing their homes to lists of Bronx foreclosed homes for sale. According to the nonprofit, out of 800 meetings conducted across New York City during summer, only 3 percent of participating homeowners got loan modifications.
According to housing counselors, most lenders participated perfunctorily and sent representatives who did not have authority to modify loans or who did not bring proper bank forms to be able to offer payment settlements. They said that many homeowners brought complete and correct financial documents, but the bank representatives just reviewed them without doing anything concrete for the homeowners.
Housing counselors also blame city officials and the courts for not thoroughly monitoring the implementation of the law. They however recognize the limitations of court staff and the backlog of work in the court system.
Additionally, a representative from the Mortgage Bankers Association reiterated that mandatory mediation should not be viewed as a magic cure for the foreclosure problem.
Based on an online real estate research firm, currently there are more than 2,200 houses for sale in the Bronx and that resale homes make up the majority. New homes and foreclosure homes make up the rest of the properties in the area’s Multiple Listing System.
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