Long Island NY Foreclosures – Crisis Over?

Will 2014 be the year we finally say, the crisis is over for Long Island NY foreclosures?

Is the crisis finally over for Long Island NY foreclosures?According to Daren Blomquist, vice president of RealtyTrac, there is strong evidence to suggest that foreclosures are no longer a threat to the Long Island NY housing recovery.

The latest foreclosure data suggests the Long Island NY housing market is heading toward a more normal market, at least where distressed properties are concerned.

Foreclosure activity, which includes default notices, scheduled auctions and bank repossessions, declined 15% in November from the previous month, the biggest monthly drop since November 2010 when foreclosure activity plummeted following revelations of the robo-signing scandal.

Year over year, foreclosure activity was down 37%.

Long Island NY Foreclosures Drove Home Prices Lower

The unprecedented level of Long Island NY foreclosures in the wake of the housing bust drove home prices lower by more than 30% from their peak levels. In the hardest hit areas, the decline was even steeper.

After hitting a peak in 2010, foreclosure activity has been on the decline for the past three years as banks pursued other alternatives such as loan modifications and short sales to resolve problem loans.

While Long Island NY foreclosures are moving toward normal, there are other indicators in housing that remain depressed. Construction starts and household formation are still well below normal.

In addition, in some regions housing affordability is once again becoming an issue, as incomes remain flat, mortgage rates rise, and low availability of homes for sale are an ongoing issue. Most borrowers still have trouble getting a mortgage.

So not all is completely well with the housing market. But it is getting better.

To stay on top of the latest news as it affects Long Island NY foreclosures, bookmark our site and visit often. Check out our other mortgage related stories by clicking on the Long Island NY Mortgage Info link to your right under Long Island NY Real Estate Categories.

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Long Island NY Home Foreclosure – Should You File Bankruptcy?

Just because you’re experiencing a Long Island NY home foreclosure, it is not necessarily reason for you to also file bankruptcy. The government has extended the rule that excludes you from paying income tax on money owed to a mortgage lender, but only for one more year – through 2014.

Check out our other articles and tips pertaining to a Long Island NY home foreclosure by clicking on the Long Island NY Mortgage Info link to your right under Long Island NY Real Estate Categories.

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Long Island Foreclosures Up in 2013

Long Island foreclosures in the first nine months of 2013 is up 28 percent in Suffolk County and 24 percent in Nassau County from a year ago, according to RealtyTrac.

Long Island foreclosures are up for the first 9 months of 2013The number of bank-owned properties also jumped during the period, up 45 percent in Suffolk and 50 percent in Nassau.

In the first nine months, RealtyTrac reported that median home prices rose by 5 percent in Suffolk and just 1 percent in Nassau, as compared with the first nine months of a year ago.

Some of the increase in distressed properties have been attributed to the effects of Hurricane Sandy.

The problem for many has been getting the insurance money to rebuild their homes.

Besides that, metro New York and Long Island are doing fairly well.

Meanwhile, as Long Island foreclosures are expected to slow down as we move into 2014, residents are still remembering just over a year ago, the ravages of Sandy.

The silver lining with Sandy is that it made us all pause and take stock of where we are as a region. The storm showed us that our island’s electrical system is antiquated, mismanaged and, most importantly, vulnerable to Mother Nature.

The storm not only highlighted our regional weakness. It showed the world Long Island’s greatest asset: Long Islanders.

We are proud to represent home buyers exclusively in Long Island. Call us if you’re needing to find a home. 516-887-6901. We promise to always represent your best interest in the home buying process.

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Long Island NY Foreclosures Return

A deluge of Long Island NY foreclosures has returned, though the numbers might not be as bad as they sound.

Long Island NY foreclosures are making a comebackIrvine, Calif.-based RealtyTrac, an online marketplace of foreclosure properties, reports the number of Long Island NY foreclosures declared through July of this year has risen dramatically compared to defaults over the first seven months of 2012 – up 534 in Suffolk to 1,845 and 767 in Nassau to 3,167.

Also spiking is the number of foreclosure starts, as banks finally initiate actions to reclaim long-defaulted properties.

Comparing Long Island NY Foreclosures This Year and Last

Comparing July 2012 to July 2013, Long Island NY foreclosures rose in Nassau by 13 percent and in Suffolk by 73 percent – though these tallies are partially skewed by a state legal process that sometimes recirculates the same loan defaults.

Regardless of whether or not it’s influenced more by older defaults than new ones, the rising foreclosure tide contradicts national trends showing foreclosure starts dropping 32 percent in a July-over-July comparison.

Comparing July 2012 to July 2013, foreclosure starts are up in 26 states, with Maryland’s 275 percent spike leading the pack. Other states reporting significant year-over-year July jumps include Oregon (137 percent) and New Jersey (89 percent).

Long Island brokers acknowledge that more foreclosed homes are hitting the market – though banks seem to be controlling the flow, to avoid saturating their markets with a glut of homes up for auction.

Long Island NY foreclosures can also have many outcomes, including new payment arrangements for current homeowners, which also slows the tide. But there’s no doubt that once a foreclosed home becomes available, it generates interest.

And while higher foreclosure numbers can spell trouble for displaced residents – and often indicate other economic stresses, such as high unemployment – a strong reselling market can actually do a lot of economic good by offering up more sales, which is good for the Long Island real estate market as a whole.

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Foreclosure Home Turns Into Nightmare

We’ve often times warned readers of this blog to steer clear of a foreclosure home, no matter how good of a deal it may seem.

This ABC News investigative report is just one of many reasons why we continue to discourage anyone from buying a Long Island NY foreclosure home…

Buying a Long Island NY foreclosure home can be very risky, as you have just seen. Don’t let your dream home turn into a nightmare. Take our advice and stay away from foreclosures.

Buying a short sale property may not be much better. Typically, Long Island short sales take longer to sell than normal home sales or a foreclosure home because of the time required for the parties-lender, buyer, seller-to respond. In the past waiting 6-18 months was common, now we find the process taking about 3-4 months if you are aggressively on top of everything. We wrote about this back in April.

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