New Promise for Foreclosed Homes in New York
July 07, 2015
The real estate market has come a long way since 2008. Although many people are still living with the consequences of the housing crash, the tide finally seems to be changing in New York.
Since housing prices are traditionally higher in New York, more homeowners were affected by the devastation of the crash. Because of this, countless properties were foreclosed. Clearly, foreclosure is the worst case scenario for homeowners and lenders. It also negatively impacts the overall housing market since it drags median home prices down. Moreover, with so many homeowners facing this loss, the process became clogged by endless paperwork and legalities. This forced some homes to be stalled in proceedings for years, leaving them vacant.
Now, years after the bottom fell out of the market, the system seems to be moving once again. In fact, the number of auctions skyrocketed this past May, rising by 118 percent over the same period a year ago. This means that lenders are finally clearing troubled properties through the paperwork process and putting them up for a final auction. This not only allows the lender to recuperate some of the cost, but it allows homeowners to truly move on from the experience while putting the house back on the market.
The data from RealtyTrac coincides with political posturing from Governor Cuomo regarding the poor state of the New York real estate market. While other areas of the country have seen a dramatic turnaround in housing, New York has had lingering problems with distressed properties. In fact, across the state, it is estimated that more than 5.5 percent of mortgages were in foreclosure during 2015.
The good news is that once the backlog is cleared, the market shows substantial promise. Overall, fewer homes in New York are becoming delinquent. These rates have dropped by 10 percent in the last year. Nationally, rates jumped by 16 percent to the highest point in nearly two years. This means that pushing current delinquent properties onto the auction block can substantially clear out the market, improving the situation for homeowners and lenders.
With all this activity in the real estate market, now is the perfect time to buy or sell your home. If you are looking to make any real estate decisions, please trust the legal expertise of Nationwide Court Service. From foreclosure to closing, our team of experts is here to help you. Contact us today.
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