Foreclosures Drop in New York and New Jersey as Courts Pick Up Pace


The foreclosure crisis that gripped the U.S. since 2008 has eased in many states, but it has persisted in New York and New Jersey because of the slow pace of their foreclosure processes through the courts. Now there are signs of change.
News Story Josh Barbanel
Wall Street Journal (WSJ)
August 3, 2016
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Tags: Housing: Foreclosure

Organizations mentioned/involved: Legal Services NYC (LSNYC), Legal Services for the Elderly in Queens (JASA)


DETAILS

A study by PropertyShark.com, which tracks foreclosures in New York City, found 673 New York City properties scheduled for auction for the first time during the second quarter, a 33% increase from the year-ago period. The biggest increase was in the Bronx, followed by Queens and Brooklyn. That upward trend continued into July: In Queens, first-time auctions were up 58% from July 2015.

Jacob Inwald, director of foreclosure prevention for Legal Services NYC, a nonprofit providing legal assistance to low-income communities, said that for years, when home values fell, lenders “had no particular incentives to foreclose,” since that would make them responsible for a property’s upkeep.

Now, he said, “there are profits to be had.”