New York: Significant Increase in Foreclosure Rates

December 2006 reported an increase in New York bank foreclosures. According to CNNMoney.com, foreclosure rates have hit the 100,000 mark for the fifth time since August. With 109, 652 homes in some stage of foreclosure nationwide, New York officials are also worried. New York is not the only state suffering from this unfortunate situation. Still to blame are the subprime loans granted in recent years to buyers who can’t really afford to buy these properties in the first place. But due to low-standard loan approvals, they have managed to obtain these properties under an ARM scheme. An estimated $500 billion out of $800 billion were borrowed by these less-desirable candidates. And here is where the big problem lies. The currently high interest rates on these mortgage loans have caused many subprime loan buyers to default on their monthly payments. Even with a stable economy and secure work, they are still unable to cope with their financial obligations. The housing market has also become sluggish these past 12 months and may even be affected by the growing inventory of foreclosure homes. House market values may even go down in places where foreclosures are predominant. This particular news might be unsettling for some home owners but presents a wonderful opportunity for real estate investors eyeing these New York bank foreclosures. Not only will they get great deals but they will also have thousands of properties to choose from. Lenders are scrambling to sell these REO properties, with some opting for public auctions that might sell them faster even with at large discounted prices. On the other hand, some lenders still choose to enter into listings contract to expose the properties to more potential buyers. Foreclosure listings, such as those compiled by Foreclosure Deals contain many New York bank foreclosure properties.