June 22, 2011
Long Island Hit Hard by Foreclosures
DiNapoli Announces Survey on Maintenance of Foreclosed Homes
New York State is faring better than other states in the nation in the mortgage foreclosure crisis but Long Island was hit hard, according to a report released today by New York State Comptroller Thomas P. DiNapoli.
To see a video report on the foreclosure crisis in Long Island click here.
"The effect of subprime mortgage lending practices on Long Island's lower income communities has been devastating," DiNapoli said. "The rate of foreclosure filings has fallen in the first quarter of 2011, but it's a false ray of hope. The numbers only look better because banks have been forced to prolong the foreclosure process because of documentation issues. The displaced families, disrupted lives and distressed communities still remain."
In conjunction with today's report, DiNapoli announced that he will survey municipalities to assess banks' compliance with laws on the maintenance of foreclosed properties. New York State law requires plaintiffs in mortgage foreclosure actions (other than a government entity) who obtain a judgment of foreclosure and sale to maintain properties until ownership is transferred. The Comptroller noted that the foreclosure process in New York now takes more than 900 days to complete, leaving these properties prone to neglect and disrepair. DiNapoli's survey will gauge whether the law is having its intended effect of preserving and protecting neighborhoods.
On Long Island, the large number of properties in the foreclosure process continues to depress home values as these properties slowly return to market. The statewide mortgage delinquency rate fell to 3.8 percent in the first quarter of 2011, only nine-tenths of a percentage point below the peak of one year ago, according to the Mortgage Bankers Association. The rate is still four times higher than it was before the recession. Further, the percentage of mortgages in the foreclosure process continues to rise, reaching 5.3 percent in the first quarter of 2011.
Suffolk and Nassau Counties had the second and third highest foreclosure filing rates in New York State during the first quarter of 2011. In calendar year 2010, downstate counties accounted for nine of the ten counties with the highest foreclosure filing rates. Putnam and Suffolk counties ranked first and second in the state during that period.
Suffolk County had 30,552 filings from 2006 to 2010 and Nassau County had a total of 22,376 foreclosure filings during the same period. In 2010, the number of filings rose by 7.1 percent in Suffolk but fell by 17.8 percent in Nassau.
To see a list of foreclosure filings and rates in Nassau and Suffolk Counties from 2008-2010, click here.
Comptroller DiNapoli is committed to expanding financial knowledge and education through his Your Money New York initiative. The Your Money New York website gives New Yorkers access to useful and reliable information, and serves as a centralized, coordinated access point for important government resources. To access the Your Money New York brochure, Help for Homeowners Facing Foreclosure, visit: www.yourmoneynewyork.com/e-pubs/tips/helpforhomeowners.pdf