Is New York In The Midst Of A Foreclosure Meltdown
Even if a bit later than the rest of the country, it seems that the sub-prime cloud is finally casting its shadow over the Empire State. The registered numbers indicate a rise in NY foreclosures of over 22% from July 2006 to July 2007. Apparently, no place was left out. NY foreclosures were felt in all the five boroughs, but in Queens and Staten Island the numbers go as high as 126% and 102% in one month. And the scariest part is that these two boroughs weren't the hardest hit: Staten Island is. It got hammered with a 184% increase in foreclosures in the previous year. In the rest of the state the news is mixed.
However, three counties showed rises of over 30%, with Nassau County as a leader, having 82%. Overall NY foreclosures show an increase of 55% over the last twelve months. The cause of all the mess is the same in New York as in the rest of the country. At the peak of its popularity, the sub-prime market handed out home loans at very low interest rates which jumped dramatically after reaching their reset periods. Those homeowners that had been seduced by the idea of lower monthly payments during the early part of the loan eventually discovered they actually had bills they couldn't pay. In this case, there are few options available so as to avoid foreclosure.
For the homeowners that find themselves in this unfortunate situation and seek help to stop NY foreclosures, there is assistance available through legitimate foreclosure prevention services. NY foreclosures can last more than a year, which is longer than in other states. However, on a long term, the situation in New York is just a little brighter than in other states. The real estate market is rather flexible here and homeowners are better informed as far as NY foreclosures are concerned. Another advantage for homeowners in New York is given by the borrower-friendly real laws.