New York Bank Foreclosures in Housing Sector Rose in 3Q

by Donald Hanz on cities

New York bank foreclosures in the housing sector rose in two foreclosure charts released by an online real estate research firm.

In September, bank repossessed homes totaled 967 units, a sharp increase from 537 units in August. In the July to September quarter, nearly 1,900 units were repossessed by lenders. The state foreclosure rate increased by more than 11 percent from the previous quarter and by more than 5 percent compared to the third quarter last year.

The September foreclosure rate increased by more than 6 percent from the previous month of August and by more than 71 percent compared to September 2008.

New York posted nearly 5,700 foreclosure filings in September and nearly 15,300 filings in the July to September quarter. One household out of every 521 households was put into the foreclosure process during the quarter.

According to housing analysts, despite the lower position of New York in nationwide foreclosure charts, the pace of foreclosure throughout the state has been rising. At the start of the foreclosure crisis, New York was believed to be immune from the housing market problem. But the recession worsened, causing the collapse of financial institutions in New York and putting many New Yorkers out of work and out of their homes.

Now, cutting down the number of New York bank foreclosures in the residential sector is a major part of the third-term campaign agenda of Mayor Michael Bloomberg.

When Bloomberg ran in the past, his campaign promoted social engineering projects that focused on pushing public art and cityscape to more lofty levels. But now, his top priority is to help New Yorkers save their jobs and houses.

His plans to create jobs, increase affordable housing and prevent more foreclosures were already part of his program over the past year, but the city’s budget deficit of $5 billion has been making the implementation of city programs difficult.

For these coming months, Bloomberg plans to provide emergency grants to around 1,000 distressed homeowners and to save about 3,000 houses from foreclosure.

Campaign advisers Andrea Batista Schlesinger and Brian Mahanna said they will also continue crafting projects to assist working-class families. The city has negotiated with banks to offer bank accounts without overdraft fees and minimum balance and is planning to fund community credit unions to enable them to offer loans to working families.