October brought an ugly surprise to hundreds of New Yorkers, as new foreclosure cases spiked dramatically.
More than 1,100 NYC households fell into foreclosure in October, a 32 percent increase from September, and a 37 percent increase from last year. Queens, which has been hard-hit since the foreclosure crisis began in 2007, had 400 new cases last month, nearly double the number of a year ago.
“People think the foreclosure crisis is toward the end, and it really isn’t,” said Rose Marie Cantanno, supervising attorney of the Foreclosure Prevention Project at the New York Legal Assistance Group. “There are still a lot of people stuck in the middle, trying to do something, but having trouble [negotiating with their lender].”
While last month’s results are well below the city’s October 2007 peak of 3,200 new foreclosures, experts fear the October 2016 uptick will continue.
The market for residential mortgages has shifted from big banks to specialized servicers and private equity owners.