New York Banking Department and RealtyTrac® Release Foreclosure Data for Third Quarter 2008
New York State Filings Continue to Increase Year-Over-Year;
Several Counties Are Disproportionately Impacted
October 30, 2008
New York, N.Y.: New York State Banking Department and RealtyTrac® released New York county-level foreclosure statistics for the period ended September 30, 2008. According to RealtyTrac there were 14,477 foreclosure filings for properties in New York during the third quarter of 2008.
In the third quarter of 2008 New York State foreclosure filings increased 19 percent compared to the third quarter of 2007, while the nation as a whole increased 71 percent during the same time period. New York’s foreclosure filings decreased 10 percent compared to the second quarter of 2008, while the U.S. experienced a 3 percent increase over the second quarter of 2008. New York State ranked 37th among all states in total foreclosure filings, which is an improvement from third quarter 2007 when the state ranked 29th in total filings.
“Though New York State as a whole compared favorably to the nation in the third quarter, many areas of the state remain disproportionately impacted,” said Richard H. Neiman, Superintendent of Banks for New York. “We are very concerned about those communities, particularly upstate, where the numbers are worsening. We must continue to aggressively address the need for systemic and sustainable loan modifications in order to avoid unnecessary foreclosures.”
There are eight counties where foreclosures filings more than doubled in the third quarter of 2008 as compared to the third quarter 2007: Albany, Orange, Erie, Broome, Onandaga, Dutchess, Ulster and Schenectady.
The counties of Queens, Brooklyn, Suffolk and Nassau have the largest number of foreclosure filings but have shown some improvement in the rate of change, with each of these counties experiencing no change or a decrease in foreclosure filings, as compared to the third quarter of 2007.
“I am encouraged by the decrease in foreclosure filings in New York for the third quarter as compared to the second quarter,” said Neiman. “I attribute this decrease to a combination of factors including our recently passed subprime lending reform bill and our community outreach efforts. Since the bill was only in effect for one month in the third quarter, I am interested to see fourth quarter numbers to review the full impact the bill will have when in effect for a longer period.”
“The quarterly decrease in New York foreclosure activity is a clear break in the trend, given that we show the state’s foreclosure activity had increased for four consecutive quarters prior to the third quarter of 2008,” said Rick Sharga, Senior Vice President for RealtyTrac. “We saw a 39 percent decrease in New York foreclosure activity from August to September alone, suggesting the new subprime reform legislation, which went into effect September 1, is having an impact on the numbers.”
Subprime Lending Reform Bill
New York’s subprime lending reform bill was signed into effect in August 2008 by Governor David A. Paterson. An important element of the bill is the mandatory pre-foreclosure notice that requires lenders to send a notice to borrowers of high-cost home loans, subprime home loans and non traditional home loans at least 90 days before the lender may commence legal action against the borrower. This mandatory component, which went into effect on September 1, was designed to encourage dialogue between borrowers, lenders and counselors in an effort to reach agreement on loan modifications and limit the number of unnecessary foreclosures.
The following tables for the third quarter of 2008 are accessible on the Banking Department Web site:
- Top twenty counties in New York for foreclosure filings
- Foreclosure filings alphabetically by county for all 62 counties
- Foreclosure filings by percentage of filings for all 62 counties
The New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $2.2 trillion.
In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.banking.state.ny.us.
RealtyTrac® is the leading online marketplace for foreclosure properties. Founded in 1996, RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure, foreclosure, For Sale By Owner, resale and new construction properties, with more than 1 million properties across the country, property reports, productivity tools and extensive professional resources. RealtyTrac is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal. More information is available at www.realtytrac.com.
Top twenty counties in New York for foreclosure filings in the third quarter of 2008
Third quarter 2008 foreclosure filings alphabetically by county
Third quarter 2008 foreclosure filings by percentage of filings