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New York Foreclosure Homes Set to Create an Avalanche Before 2008 Ends |
By Joseph Smith
 The volume of New York foreclosure homes is set to create a historical avalanche in December 2008. There are two main factors that are to be blamed for a sudden and surprising turn of events for the states housing market. Have you ever wondered why for some time New York has not made it to the top 10 of states with the highest number of foreclosures?
Market analysts and employment experts forecast job losses in the state to rise by as much as 48,000 by the start or 2009. Of course, when the unemployment rate balloons, it is just logical that many households would fall into defaults for their mortgages. Not to mention is the rising interest rates and subprime costs, which never fail to affect the volume of foreclosed homes in any state.
The second and more prominent reason is the lifting of a 90-day ban that has been preventing mortgage lenders to complete foreclosures of New York foreclosure homes. In August, the state legislators ratified a state law that require banks to observe a 90-day period before homes are
completely foreclosed to give homeowners chances to take time, avoid and modify foreclosures. The law was implemented across the state in September 1. By the first week of December, the 90-day grace period given in September will be over. The result: most homes under foreclosure before and during September 1 will finally be foreclosed and sold to the market.
Economists and market observers warn that such legislations are only prolonging foreclosure processes, not actually providing solutions. New York should take heed and learn from the experience of Massachusetts, which implemented the same state law in May. During the moratorium, foreclosure seemed controlled. But when August came and the 90-day period elapsed, foreclosures surged to 456%.
Joseph Smith has been educating buyers on the finer points of New York foreclosure homes purchase at NewYork-ForeclosureHomes.com for over four years. Click here to visit and read more advice on finding Buffalo foreclosure homes and foreclosures in other New York cities.
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