Rockland County, New York Real Estate

Rockland County Agent | http://www.rocklandcountyagent.com

Christine Celander (845) 222-6606 Email christine@rocklandcountyagent.com

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FORECLOSURE BOOM ?????????

Excerpt From Bloomberg News March

As many as 1.5 million more Americans may lose their homes, another 100,000 people in housing-related industries could be fired, and an estimated 100 additional subprime mortgage companies that lend money to people with bad or limited credit may go under, according to realtors, economists, analysts and a Federal Reserve governor. Financial stocks also could extend their declines over mortgage default worries.

Excerpt From The New York Times March

Senator Charles Schumer, New York, said yesterday that he favored an overhaul of federal mortgage regulations, citing widespread concern about the surge in defaults and foreclosures involving subprime mortgages, risky home loans made to people with weak credit. Citing data from the Federal Deposit Insurance Corporation and the Census Bureau, Mr. Schumer said that about 91,000 households in New York State, including 53,000 in the New York City metropolitan area, were at risk of foreclosure by the end of 2008, as interest rates on adjustable-rate mortgages are reset. At a hearing on Thursday, members of the Senate Banking Committee criticized the Federal Reserve for failing to curb mortgage lending abuses.

For Some Subprime Borrowers, Few Good Choices.
Excerpt From The New York Times March

Last year, more than 37 percent of subprime loans were made without verification of borrowers' incomes, up from 15 percent in 2000, according to an analysis by JPMorgan Chase. Also, a third of borrowers took out a second mortgage, up from 6.8 percent in 2003, suggesting that they did not have enough money for a down payment.

For these borrowers, the best alternatives, according to some housing specialists, may include short sales, in which a lender accepts a sale for less than what is owed on the house, or a deed in lieu of foreclosure, where a lender takes ownership of a house instead of full payment of the mortgage.

Rising default rates have thus far had a modest impact on the overall economy, but economists fear that the problems could intensify if a broader range of borrowers, including those with stronger credit, start falling behind on payments. A big increase in the number of homes for sale, because of rising foreclosures, would put more pressure on prices and limit home buying and consumer spending.

The Senate Banking Committee will hold a hearing on problems in the subprime market today in Washington. Senator Christopher J. Dodd, Democrat of Connecticut and the committee's chairman, has suggested that the federal government may need to bail out homeowners in trouble, and some housing advocacy groups are calling for a moratorium on foreclosures.

Posted to this blog 3/31/07

In many parts of the New York area,subprime borrowers can qualify for government-sponsored mortgages with low interest rates and low down payments. Those who are members of minority groups, or who have incomes 20 percent below their area’s median, may qualify. 

Foreclosure Threat ? Great Advise !

The Journal News April 8 2007

Homeowners who are slipping behind on payments need to take the initiative, experts say.
- Contact an attorney and ask what options might be available, though some homeowners might feel comfortable contacting the lender directly. The lender may be willing to agree to a modified payment plan.
- Explore selling the home. A homeowner's lawyer can contact the lender and ask for time to let the deal close. The lender, looking to avoid the costs of foreclosure, may agree to this.
- Contact a nonprofit housing or credit counseling agency for help in assessing your financial situation. It also can help you organize a budget to pay your mortgage and other monthly expenses - without your mortgage company's direct involvement

Recent stats for single-family housing in the Lower Hudson Valley.
Westchester
Sales Median price
February 2006 245 $662,000
February 2007 303 $659,500
Rockland
Sales Median price
February 2006 94 $522,500
February 2007 101 $489,000
Putnam
Sales Median price
February 2006 62 $395,750
February 2007 45 $400,000

Source: New York State Association of Realtors