October saw a steep increase in foreclosures in New York City, with more than 1,100 homes falling into foreclosure. It’s a 32 percent increase from September, and 37 percent higher than last year.
The bulk of the troubled homeowners were in Queens and Brooklyn, and October was the worst month in both boroughs for foreclosures in 2016. Queens saw 400 new foreclosure cases, nearly double last year’s numbers, and Brooklyn saw 365 new cases, a 20 percent increase, according to data from RealtyTrac.
The trend in New York City outpaces the state, which saw the number of new foreclosures increase 15 percent. Nationwide, the trend plotted in the other direction for the 16th straight month, with foreclosures declining 8 percent.
A large number of foreclosures in the city are on homes with reverse mortgages, a risky home-equity loan often used by senior citizens. In July, the New York Post reported a spike in foreclosures on homes with reverse mortgages and the trend doesn’t seem to be diminishing.
“People think the foreclosure crisis is toward the end, and it really isn’t,” Rose Marie Cantanno, an attorney with the New York Legal Assistance Groups that works with homeowners facing foreclosure, told Post. The number of foreclosure cases has fluctuated throughout the year.
On Dec. 31, the federal Home Affordable Mortgage Program will expire, but lenders are likely to continue income-based modifications similar to the HAMP program. [NYP] — Chava Gourarie