Oct 24, 2007 9:30 pm US/Eastern
Foreclosure Filings Up 99 Percent Since '06
NEW YORK (CBS) ―
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A figure recently released by an online marketplace is startling. Since last September foreclosure filings went up 99 percent nationwide.
AP
A figure recently released by an online marketplace is startling. Since last September foreclosure filings went up 99 percent nationwide.
Ray Dawkins became the proud owner of a beautiful redbrick house in Brooklyn, New York ten years ago.
"It felt good, like I accomplished something. It was a dream come true," said Dawkins.
But this "dream" is about to turn into a nightmare. Now that Dawkins' mortgage is increasing $600s a month, and his lender is unwilling to negotiate, he can no longer afford his home. It turns out, with the current national trend, Dawkins isn't alone.
NYC comptroller William Thompson gave CBS station WCBS-TV in New York some startling statistics. "New York City will experience roughly 15,000 foreclosures filings this year, more than double the total two years ago. Unfortunately, far too often, lenders are being irresponsible," said Thompson.
Some lenders are getting the message and taking action. Tuesday, Countrywide National, the largest mortgage lender in the country, announced it would offer tailored solutions to its at-risk borrowers. But some say that move is too little too late.
"From what we have seen, this is a glorified payment plan. It's a very complicated razzle dazzle. We're saying, let's be simple," said Bertha Lewis of the Association of Community Organizations for Reform Now, or A.C.O.R.N.
Lewis created a three step initiative with the New York State and city comptrollers. Together, they are calling on lenders and servicers to:
- Engage in aggressive outreach.
- Implement an affordability assessment.
- Emphasize long-term solutions.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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