The subprime lending crisis that has devastated many of the borough’s working-class communities took on new urgency last week as experts predicted another wave of foreclosures in the coming months.
Foreclosure Wave To Hit Queens
In July alone, Queens saw 882 foreclosure filings, the most of any borough, according to a report released last weekend by Sen. Charles Schumer. That tally marks a 56 percent increase from February, when foreclosure filings reached 566.
Hardest hit, experts say, will be the borough’s poorest neighborhoods. There, unscrupulous lenders have sold an inordinate number of subprime loans that charge high interest rates to borrowers with lower credit scores and fewer financing options.
And more often than not, those borrowers are low-income families and elderly residents, predominantly in communities of color, experts say. With offers of “no money down” and longer loan terms, unscrupulous brokers open the doors to home ownership for residents of lesser means with little regard to whether they can actually afford it.