The State of New York witnessed an increase of 40% in foreclosure rates as compared to 112% spike nationwide. Though is may bring smiles on the faces of New Yorkers, the happiness is limited. Reports released recently suggest that an increasing number of New York foreclosed properties. Fortunately, New York gets a low berth on the highest foreclosures by state list, but ForeclosureDataBank report also suggests that New York recorded a significant increase of 34% for foreclosure from Jan – Mar 2008 as compared to the same period last year.
Ballooning loan payments coupled with other financial issues have crippled several thousands of New Yorkers and are indicative of an impending doom or crisis. Over 6,200 homeowners in all the 5 boroughs of New York metro area have been unable to keep date with their mortgage payments. The highest number of foreclosed homes for sale is in areas such as Staten Island, followed by Manhattan, Queens, the Bronx, and Brooklyn. Queens is the borough that has the highest number of foreclosures in pending state. Simply said, the country’s economic crisis is keeping New Yorkers on their toes and giving them sleepless nights!
Reasons such as loss of job, financial crisis, increasing inflation have all contributed to the increase in the count of New York foreclosures. But the single most common cause cited by homeowners, across the nation, for losing their homes is the increase in interest rate on adjustable-rate mortgage loans, which has made it difficult for them to continue paying their mortgage payments. According to a report released by the U.S. Census Bureau, a staggering 18.6 million homes were vacant, nationwide, in March 2008 alone!
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Written by Alex Rolim.
