New York Foreclosures have risen higher than the fat kid and old man from UP!
New York foreclosures have skyrocketed with more than 1,100 cases filed in the city in October. There has been a 32 percent increase from September to October according to Catherine Curan at the NY Post.
Attom Data Solutions states Queens has had the biggest increase in foreclosures. Foreclosures are up 37% from last year and continuing to rise. Brooklyn also had a double-digit increase. Brooklyn saw a 20% increase in foreclosures in October alone with 365 new cases.
New York Foreclosures have increased at nearly twice the rate as the rest of the state. Foreclosures have only increased by 10% statewide. New York seems to be doing the opposite of the trend nationally. Foreclosures have dropped by 8% nationally.
Experts say the spike is due to defaults are due to questionable loan modifications. Many homeowners who received modifications did not receive true loan modifications. They received what are know as forbearance agreements.
Forbearance agreements are when homeowners agree to pay any arrearages at the end of the loan. The homeowner does not receive any type of principal write down in a forbearance agreement. This is regardless if the value of the property is less than is what is owed. Many of these forbearance agreements contained massive payment increases after five years. Thus putting New York homeowners back in foreclosure.
New Yorkers is also seeing a sharp increase in reverse mortgage defaults which are also driving up the foreclosures across the state.