Foreclosure and Loan Modification Blog

Unresolved Foreclosure Issues a Problem for Many New Yorkers

[fa icon="clock-o"] Tuesday, April 22, 2014 [fa icon="user"] Jake Sterling [fa icon="folder-open'] financial worksheet for loan modification, loan modification attorney, new york foreclosure attorney

By Suffolk County Bankruptcy Lawyer, the Law Offices of Allison B. Crain & Associates 

Regional Spotlight—New York ranks third in the nation in the number of homeowners delinquent on their mortgages or in foreclosure, the Mortgage Bankers Association recently reported. In 2013, the number of foreclosures reached a three-year high in the state. Experts sSlow_economypeculate that the number of high foreclosures is partially due to a still-sluggish local economy. While the unemployment rate is lower than it has been since the end of the Great Recession, many jobs are lower-paying and the unemployment rate is still higher than it was before 2008.

Delays in processing foreclosures

Banks in New York have fallen behind on processing delinquent loans, creating a backlog that has let some homeowners avoid making loan payments for years. “Loans that were made pre-crisis have been in this state of suspended animation for a number of years. And now, we are beginning to see the pace of resolution pick up,” Michael Fratantoni, chief economist of the Mortgage Bankers Association, told the Financial Advisor. In New York, nearly half of homes 90 days or more past due have been delinquent for more than four years, according to Fitch Ratings. That financial-crisis1makes foreclosures in the state the longest in the nation, with a foreclosure taking over 1,000 days on average. One reason for the backlog is that New York is a judicial foreclosure state, meaning a judge must sign off on a foreclosure before it is complete. States that do not require a judge’s signature tend to move more quickly on foreclosure proceedings.

Mortgage defense

For homeowners deficient in their mortgages, there are legal options. Loan modifications, short sales, and foreclosure defense may allow a homeowner to keep his or her house or get out from unmanageable debt. New Yorkers concerned about foreclosure actions should speak with a knowledgeable New York real estate attorney.

Reprinted with permission from RISMedia. ©2014. All rights reserved.

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Jake Sterling

Written by Jake Sterling

Jake Sterling is Amerihope Alliance Legal Services' Homeowner Liaison. He helps to bring awareness and teach homeowners about foreclosure defense and options to save their homes.

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Amerihope Alliance Legal Services is a leading loan modification and foreclosure defense law firm with attorneys licensed in 5 states. We have helped over 7,000 homeowners fight back and keep their homes.

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Our goal is to provide valuable information to help homeowners who are trying to obtain a loan modification or to stop foreclosure. You may schedule a free consultation at any time.

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