Results tagged “foreclosures”

Accompanying its article on how minorities were among the hardest hit victims of foreclosure in the New York City and surrounding area, the NY Times also created an interactive map showing how "foreclosure rates in the region were highest in areas with high minority populations." Minorities have been targeted by predatory lenders; the map also shows how the problem is small in 2005 but mushrooms in 2008. As for the situation at present, Bedford-Stuyvesant Restoration Corporation president Colvin Grannum lamented, "Rather than helping to narrow the wealth and home ownership gap between black and white, we’ve managed in the last few years to strip a lot of equity out of black neighborhoods," and City Councilman James Sanders (D-Queens) said of the blocks with boarded houses, "My district feels like ground zero. In military terms, we are being pillaged."

As one report says the biggest jump in delinquent mortgages occurred in NY State (up 35% last year), another report is linking a rise in crime to the rise in foreclosed homes. Based on ACORN's studies, the Daily News reports, "The only Queens areas where crime rose between 2006 and 2008 - Jackson Heights, Kew Gardens/Woodhaven, Jamaica/Hollis and Rockaway/Broad Channel - had high foreclosure rates." (Lawmakers have said those areas were targeted with subprime mortgage offers.) Looking at NYPD and FBI data, ACORN found that high-foreclosure neighborhoods had much more crime than low-foreclosure neighborhoods over that period, "The increasing displacement of homeowners leaves neighborhoods without the deterrent presence of concerned neighbors' watchful eyes." The News offers one example: "Two serial rapists who terrorized southeastern Queens last summer viciously attacked women more than a dozen times in a vacant church and other abandoned buildings."

There may be a small bit of comfort for residents who live in big apartment complexes on the brink of possible foreclosure in the NY Times. Some experts think the tenants Riverton Houses, Stuyvesant Town-Peter Cooper Village, and Savoy Park—where owners bet wrong about buying massive developments to make big returns—will be okay. For instance, regarding Riverton where foreclosure proceedings against the owner have begun, the Times reports, "If the lender sells the complex, or reaches a new agreement with the current landlord, the tenants at Riverton Houses would still enjoy the benefit of newly refurbished lobbies and elevators, as well as extensive landscaping." The downside? Riverton's ownership contests foreclosure and the buildings—and surrounding area—"languish" during a long court battle.

J.P. Morgan and Citigroup will not foreclose on homes for a little while, acting on Rep. Barney Frank's suggestion of a foreclosure moratorium earlier this week. According to the AP, J.P. Morgan CEO Jamie Dimon sent a letter of his company's intentions to stop new foreclosures on owner-occupied homes through March 6 while Citigroup will halt their "principle residence" foreclosures till March 12—which is about the time the Obama administration hopes to have clarity on its foreclosure prevention plan. Dimon wrote in his letter, "We stand ready to work with you to put the appropriate processes in place, including a national modification standard, to reduce the incidence of foreclosure and to encourage long-term, sustainable home mortgages."

While the number of NYC homes in foreclosure declined in November, things look to be rocky ahead. Property Shark CEO Bill Staniford explained that since the 3-month moratorium on NY State foreclosures expired last month, "There could be a spike of foreclosures in December." As for November data, the Observer reports, "Queens, once again, led all boroughs in foreclosures with 172 in November, with a good bulk of those centered on the subprime hub of Jamaica. Staten Island is next with 47, followed by Brooklyn with 21, the Bronx with 13 and Manhattan with five." Crain's breaks it down like this: In SI, "one in every 3,511 homes" is scheduled for a foreclosure auction, while in Queens "one in every 4,505 homes fac[es] foreclosure." And in Manhattan, it's "one in every 146,400 homes" is headed for foreclosure auction.

The NY Times calls today's 344-point plunge in the Dow Jone industrial average "the index’s worst performance since June." Some of the possible reasons: The Labor Department announced more Americans were applying for unemployment; oil production is down (but the price of oil dropped $1.70); and slow retail sales. One investment strategist told Bloomberg Radio, "If you look at the data we have on the U.S. and global economy, things are only getting worse and that leads me to believe that demand is going to slow down and slow down pretty quickly." Related: NYC foreclosures were up 13% between July and August, to 383 foreclosures (254 in Queens also).