INDUSTRY REPORT: Foreclosure Plague Hits New York

New York City and its people are known for their resilience and resourcefulness. It is our strong willed nature to endure all challenges and survive. But even in a city with record wealth in opportunities, this economic struggle has given New York some of the highest records in financial casualties. “New York City foreclosure filings increased substantially in February,” said Rick Sharga, vice president of marketing at RealtyTrac. “It appears that the foreclosure storm that's been brewing elsewhere in the country is now making its way to New York City.”

The 10-county New York City metropolitan area reported 3,518 properties with foreclosure filings in February, a 19 percent increase from the previous month and a 116 percent increase from February 2007, according to RealtyTrac. Queens County reported 962 properties with foreclosure filings in February, the most of any metro county despite a 2 percent decrease from the previous month. Kings County (Brooklyn) registered the second highest foreclosure total in the metro area, reporting 732 properties with foreclosure filings during the month. Foreclosure activity in Brooklyn increased 14 percent from the previous month, and one in every 1,295 households received a foreclosure filing in February.

Real Estate attorney, Michael Menicucci of Menicucci Villa and Associates (NY) says “how can you possibly keep your head above water when your mortgage doubles from out of the blue? The market drops your house value anywhere from 25-35% and you can't refinance because you have zero equity.”