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Oct 24, 2008 6:51 pm US/Eastern
Foreclosures At 2-Year High In New York City
Hundreds Of Houses Go Up For Auction Every Friday In Queens
NEW YORK (CBS) ―
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For a telling snapshot of this economy in crisis, you can look to the Queens courthouse. Every Friday, at least 100 homes go up for auction because of foreclosure.
CBS
For a telling snapshot of this economy in crisis, you can look to the Queens courthouse. Every Friday, at least 100 homes go up for auction because of foreclosure.
They raise their voices as much to make a point as to drown out their own sorrow, sorrow at losing the dream they'd spent a lifetime building. They are homeowners who suddenly find they're giving up the life they've lived for so long.
"We were told we were getting fixed rate loans and we were getting adjustable rates," said Tanya Blade of Brownsville.
Blade and other homeowners are all in foreclosure, many after owning for decades and deciding to refinance. The new loans quickly adjusted upwards by hundreds, even thousands of dollars. On Friday, more than 100 homes were being auctioned off at the Queens County Superior Court, what's become a weekly event.
"Right now I'm in a very bad position," said Park Slope resident Gladys Guy. "I'm a retiree and I just can't afford the mortgage and I'm getting ready to go into the foreclosure also."
Foreclosures are at a two-year high in New York, up 60 percent citywide from a year ago. What's driving the numbers are the staggering 100 percent increase in foreclosure in Queens, and 96 percent in Staten Island, compared with only a handful of foreclosures seen in Manhattan.
But that misery makes for opportunity for others. Mark Wacker works for PropertyShark.com, which tracks foreclosure data. He's trying to get more clients to sign up for his services.
Mortgage broker Robert Rosenfeld is trying to cut a deal with his friend's bank.
"They don't want the inventory; they have too many houses already. They're in the business of collecting money. I'm willing to help my friend, but they have to be considerate," he said.
And there are those who will negotiate with the bank for you.
"We're seeking to help homeowners modify existing mortgages and keep their homes," said Rich Banach of the American Modification Agency.
And all for a fee of 1 percent of the total loan price.
ACORN has seen settlement work go up 500 percent in the past year. About half so far have successfully been resolved, another 40 percent are still waiting to hear back from the bank. And they'll do it for free. You can also call 311 for other not-for-profits that will do this.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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