New rules freeze NY foreclosure activity

Foreclosure cases in New York state have ground to a near-halt, according to the New York Post, after new foreclosure rules set harsh penalties for any filings that include fraudulent information. While many banks aren’t filing any foreclosure documents in court, state officials say that they are still preparing those cases. “Banks do not want to be the first to test the new rules,” a source with the state department said. The number of homes in foreclosure in New York state is 80,000 — up from 20,000 four years ago. [Post]