In a report issued by real estate research site, PropertyShark, The Bronx has seen the highest increase in foreclosures in the second quarter of 2016 compared to the same time period last year—by 47%.
Leading the Bronx in foreclosures is the 10473 zip code encompassing the neighborhoods of Parkchester, Soundview, and Castle Hill with 24 new foreclosures listed totaling $3,034,143 with an average lien of $379,267.
PropertyShark also states that this is the highest rate of first-time scheduled foreclosures since 2010 in New York City.
In terms of raw numbers, Queens remains the epicenter of foreclosures with 302 scheduled in the same quarter with The Bronx following second with 153 properties scheduled for foreclosures.
“The second quarter of 2016 saw a surge in first-time foreclosure auctions across the five boroughs to levels unseen in the past 6 years. There were 673 properties scheduled for the first time to auction, up 33% Y-o-Y, and up 31% compared to Q1 2016. Queens, Brooklyn and the Bronx recorded substantial increases in foreclosure activity, while Manhattan and Staten Island saw a drop compared to the previous quarter.
Almost half of the city’s foreclosure auctions are concentrated in Queens, mostly in its Southeast neighborhoods, an area that’s become known as the epicenter of the city’s housing bust.”
With reports of unemployment dropping in The Bronx, you would think that foreclosures shouldn’t be much of an issue but the sad reality is that many people are underemployed. There’s also the fact that many homes were overvalued with people taking out mortgages on properties that were more than the property was worth.
Those are just a few of the scenarios that can lead to foreclosures in our borough.
What can you do to avoid foreclosure?
The United States Department of Housing and Urban Development as the following advice:
Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?
Don’t ignore the letters from your lender
Contact your lender immediately
Contact a HUD-approved housing counseling agency
Toll FREE (800) 569-4287
TTY (800) 877-8339
If you are unable to make your mortgage payment:
1. Don’t ignore the problem.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
2. Contact your lender as soon as you realize that you have a problem.
Lenders do not want your house. They have options to help borrowers through difficult financial times.
3. Open and respond to all mail from your lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notices of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.
4. Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can’t make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.
5. Understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found online.
6. Contact a HUD-approved housing counselor.
The U.S. Department of Housing and Urban Development (HUD) funds free or very low-cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender, if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.
7. Prioritize your spending.
After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses–cable TV, memberships, entertainment–that you can eliminate. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.
8. Use your assets.
Do you have assets–a second car, jewelry, a whole life insurance policy–that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
9. Avoid foreclosure prevention companies.
You don’t need to pay fees for foreclosure prevention help–use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and services your lender or a HUD-approved housing counselor will provide free if you contact them.
10. Don’t lose your house to foreclosure recovery scams!
If any firm claims they can stop your foreclosure immediately and if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional or a HUD-approved housing counselor.