Foreclosures in New York City Rise Sharply In October

by San Antonio Attorney

More than 1,100 homes fell into foreclosure in New York City last October.  Majority of the foreclosures were located in Queens and Brooklyn.

Queens has a total of 400 foreclosure cases, a doubled percentage compared to 2015.  Brooklyn has a total of 365 new cases, an increase of 20 percent compared from last year’s foreclosure rates, according to data obtained from RealtyTrac.

A lot of foreclosures in New York are houses on reverse mortgage.

Otherwise known as a home equity conversion mortgage, reverse mortgage is a form of home loan intended for elderly homeowners.  This type of loan does not have monthly mortgage payments.

However, the borrowers will still comply with property taxes and payment for homeowner’s insurance.

New York has a drastic increase of house foreclosures with reverse mortgages last July, according to the New York Post.  The increase has not dwindled since then.

Rose Marie Cantanno, a lawyer connected with the New York Legal Assistance Groups, said that foreclosure is the not the endpoint of a problem.   Cantanno works with homeowners who face possible foreclosures.

The Home Affordable Mortgage Program was introduced in 2009.  It is a government program that addresses the subrpime mortgage crisis.  This program is a part of the ‘Making Home Affordable’ program, which is covered under the Emergency Economic Stabilization Program.

Unfortunately, the program will expire on December 31.  The lenders were reassured that they are likely to continue another program similar to the Home Affordable Program.

If a homeowner fails to pay off the mortgage, then the bank or the mortgage lender has the right to initiate foreclosure.  Homeowners are advised not to surrender their property right away.  A knowledgeable Real Estate Attorney can provide a variety of options in a legitimate manner.

 

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