Looking back at the nation’s “Great Recession,” some may remember that a significant number of individuals saw their homes enter the foreclosure process. These days, however, it seems as if the economy has rebounded and some may think the nation’s foreclosure crisis is at an end. However, that may not be the case for some homeowners in New York.
October saw a significant uptick in the number of foreclosures in New York City. In that month, over 1,100 New York City homes fell into foreclosure. This is a 32 percent upsurge from the prior month and a 37 percent upsurge from the same time in 2015.
In October, Brooklyn saw 365 new foreclosures and Queens saw 400 new foreclosures. Overall, the state of New York experienced a 15 percent rise in new foreclosure cases. The nation as a whole though, saw an 8 percent decline in foreclosures in October.
According to one professional, the foreclosure crisis has not yet met its end. While October’s numbers are significantly lower than those of October 2007, when there were 3,200 new foreclosures, some professionals believe the current trend of increasing foreclosures will continue.
The federal Home Affordable Mortgage Program, which offered homeowners income-based modifications to loans with low interest rates, will conclude at the end of the year. This will leave some homeowners unable to meet their mortgage obligations.
Being unable to meet one’s mortgage payments is a situation no one in New York wants to find himself or herself. Those who are facing the threat of foreclosure may still have legal solutions that may stall the foreclosure process, including filing for bankruptcy. Doing so may give them the opportunity to save their homes.
Source: The New York Post, “New Yorkers see drastic spike in home foreclosures,” Catherine Curan, Nov. 13, 2016
