DiNapoli: Mortgage Delinquencies Down But Foreclosure Inventory Still Rising
Publishes a "Help for Homeowners Facing Foreclosure" Brochure
While the number of new filings for foreclosures fell sharply in 2010, the percentage of New York State properties in the foreclosure process continues to grow, according to a report released today by New York State Comptroller Thomas P. DiNapoli. In addition to the report, DiNapoli also announced the publication of a new brochure, “Help for Homeowners Facing Foreclosure,” made available through his Your Money New York initiative.
“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.”
“In general, the foreclosure crisis in New York State and New York City was less severe than in other parts of the country. But neighborhoods in Brooklyn, Queens and the Bronx were especially hard hit. We have to refocus our attention on solutions that will keep people in their homes, keep our neighborhoods safe and keep our economy on the road to recovery. My new resource guide made available through my Your Money New York initiative is a good starting point for homeowners in distress to learn about their rights in this process.”
The percentage of mortgages in New York State delinquent by 90 days or more averaged less than 1 percent before the housing crisis, but delinquencies grew fivefold to nearly 4.7 percent by the first quarter of 2010. While the percentage of homes in 90 day delinquency has eased, the overall share of mortgages in the foreclosure process continued to rise to 5.2 percent in the fourth quarter of 2010, five times higher than the share before the crisis.
The report released today examined foreclosure filing rates over the past five years. Highlights of the report include:
DiNapoli is committed to expanding financial knowledge and education through his Your Money New York initiative. Your Money New York gives New Yorkers access to useful and reliable information, and serves as a centralized, coordinated access point for important government resources through a user-friendly website, newsletters, and partnership events. To access the Your Money New York brochure, Help for Homeowners Facing Foreclosure, visit: http://www.yourmoneynewyork.com/e-pubs/tips/helpforhomeowners.pdf.
- The foreclosure crisis followed a large increase in subprime mortgages. In New York State, the number of subprime mortgages 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, and remained at that level in 2009.
- Between 2006 and 2009, the number of foreclosure filings in New York City rose by 31.7 percent to 22,886. Queens (8,964) had the largest number of filings, followed by Brooklyn (7,108), the Bronx (3,000), Staten Island (2,646) and Manhattan (1,168).
- The foreclosure filing rate in some parts of the City exceeded the national rate in 2009. Half of the neighborhoods with the highest filing rates in New York City in 2009 were located in Queens, including Jamaica, Bellrose, Howard Beach, Kew Gardens and the Rockaways.
- In 2010, the foreclosure filing rate declined sharply, by 24.9 percent in New York City. In Queens, that rate dropped by 45 percent.
- While Queens accounted for half of the ten neighborhoods with the highest foreclosure rates in 2009, Brooklyn accounted for half in 2010, including East New York/Starrett City, Flatlands/Canarsie, Brownsville/Ocean Hill, East Flatbush and Bedford-Stuyvesant.
- Because of the large number of renters in New York City, the rate of foreclosure filings per 1,000 households tends to be much lower than the rate per 1,000 home owners (6.9 compared to 20.9 in 2009).
- Subprime mortgages represented more than 40 percent of all new mortgages in 2006 in nine of the ten City neighborhoods with the highest foreclosure filing rates based on homeownership. The share of subprime mortgages in these neighborhoods nearly doubled between 2004 and 2006, and is much higher than the statewide average.
The Your Money New York website is an easy-to-use, multilingual site that covers credit cards and consumer debt, home mortgages, savings and investments, insurance, and protection against identity theft and financial scams. It also provides access to interactive calculators and DiNapoli’s Open Book New York Web site, which brings detailed information on State and local government finances to taxpayers through a centralized, user-friendly platform. To learn more, visit: www.yourmoneynewyork.com.