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Delinquencies Down in New York but Foreclosure Inventory Rising

The number of new filings for foreclosures in the state of New York fell in 2010, but the percentage of properties in the foreclosure process is growing, according to a ""new report"":http://www.osc.state.ny.us/osdc/rpt13-2011.pdf from ""New York State Comptroller"":http://www.osc.state.ny.us Thomas P. DiNapoli.

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""New York had a sharp drop in new foreclosure filings in 2010, but that drop can be attributed in part to a temporary suspension of foreclosure related activity, not an improvement in the market,"" said DiNapoli. ""The growing percentage of mortgages in the foreclosure process is a more precise indicator of the continuing fallout from the housing crisis and recession.""

While mortgages in the state delinquent by 90 days or more averaged less than 1 percent before the housing crisis, delinquencies grew to nearly 4.7 percent by the first quarter of 2010.

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Additionally, mortgages in the foreclosure process increased to 5.2 percent in the fourth quarter of 2010, five times higher than the share before the crisis.

""In general, the foreclosure crisis in New York State and New York City was less severe than in other parts of the country,"" DiNapoli said. ""But neighborhoods in Brooklyn, Queens, and the Bronx were especially hard hit.""

According to the report, which examined foreclosure filing rates over the past five years, New York's foreclosure crisis followed a large increase in subprime mortgages. The number of subprime mortgages in the state grew by 83.8 percent from 2004 to 2006.

From 2006 to 2008, New York State's foreclosure filing rate more than doubled to 6.3 filings per 1,000 households, remaining at that level in 2009.

Additionally, between 2006 and 2009, the number of foreclosure filings in New York City rose by 31.7 percent. Queens had the largest number of filings followed by Brooklyn, the Bronx, Staten Island, and Manhattan. In 2010, the foreclosure filing rate declined by 24.9 percent in New York City. In Queens, it dropped by 45 percent.

Because of the large number of renters in New York City, the rate of foreclosure filings per 1,000 households is lower than the rate per 1,000 homeowners (6.9 compared to 20.9 in 2009).

DiNapoli says it's time for New York to refocus its attention on solutions that will keep people in their homes, keep neighborhoods safe, and keep the state's economy on the road to recovery.

About Author: Heather Cernoch

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