Currently, there are approximately 80,000 foreclosure matters pending in New York State. In October 2012, one out of every 2,223 homes in the State of New York was in foreclosure according to Realtytrac. In the metropolitan New York area, there are tens of thousands of homes in foreclosure.
Foreclosed Homes Impact On Other Homeowners
When a home in a community goes into foreclosure, it has a negative impact on the other homes in the area. The property values of the homes in its vicinity are reduced. The foreclosed homes are taken into consideration by appraisers when determining the valuation of homes by looking at comparable properties in the locality. Homes sold in foreclosure are sold at lower values than homes sold in a traditional real estate transaction. The reduced sales prices of foreclosed homes has a negative impact on all the other homes in the area.
Banks Are Unwilling To Lend
The more homes in a given area that go into foreclosure, the more squeamish banks become with regard to making loans for the purchase of other homes in the area.
Foreclosures On Long Island, New York
There has been an uptick in the number of homes going into foreclosure in Nassau and Suffolk Counties in Long Island. As a result of the high volume of foreclosures, a foreclosure proceedings are taking the courts longer and longer to process. Foreclosures in New York are handled in the Supreme Court of the county in which the house is located. It currently takes about two years for a foreclosure to go from start to finish on Long Island.
New Requirements In Foreclosures
In all foreclosure actions, the courts now require a foreclosure court conference be held. At this conference, the attorney for the bank and the homeowner meet to discuss options with the court. This occurs in each and every residential foreclosure brought in New York. This must be completed to the Court’s satisfaction before the case can move forward.
Robo-Signers
Since 2010, the courts in New York are requiring the attorneys for the lending institutions to submit written verification of the accuracy of old documents filed with the courts. The purpose of this rule was to deal with the issues concerning “robo-signing” by individuals working for financial institutions.
Dealing With Foreclosure
The best way to deal with foreclosure is to hire an experienced foreclosure defense lawyer to provide you with an explanation of your options and of the appropriate legal action to take to protect your legal rights.
