Written By: Glenn Michaels
Three states have an unusually high inventory of foreclosures. They are New Jersey, New York and Florida.
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In the United States during the month of May 2014 there were 47,000 homes where the foreclosures were completed. This figure is down from a year ago where we had 52,000 homes foreclosed. Nationally there is a back log of foreclosures totaling 660,000 homes. Nationally foreclosures are up 3.8% over last year.
New Jersey: 5.8%
The state’s problems go much deeper than just housing. New Jersey recently revealed a state budget with an enormous deficit. Part of the problem is the employment situation, high unemployment, recovery from Super Storm Sandy and now four of the state’s largest casinos and hotels have announced that they are closing or in bankruptcy. This result in more unemployment and may increase the foreclosure rate in New Jersey. The casino closings are due to increased competition from competition. When New Jersey started casino gambling in Atlantic City it was the only location in the Northeast USA with casino gambling. Now there is more competition and the casino business is not as popular was it was.
In the Northeast USA there are now casinos in New York, Pennsylvania, Delaware, Connecticut and Massachusetts with more coming on. Many of the casino patrons were from New York City and punts east of New York City. New York City now has a casino in Queens, NY that is a subway ride a way. In addition there is a casino in Westchester County (Yonkers) and in Connecticut there are two more casinos in Connecticut. It is obvious that New Jersey must reinvent themselves to increase employment to cut down on foreclosures.
Florida: 5.2%
Florida was battered by the foreclosure crisis. The crisis was so bad that many lenders postponed foreclosing due to the glut of homes. To make matters worse many residents vacated their homes during foreclosure and these homes were left to deteriorate.
Recently Fannie Mae and Freddie Mac reported that they have more homes in foreclosure from Florida than any other state (40,000 out of 141,000 nationally).
New York: 4.3%
New York State was also hammered by the housing crisis. It has been reported that 60,000 homes in Manhattan are underwater. In addition many homes are still being rebuilt and elevated due to Super Storm Sandy.
Recently the New York State Attorney General’s Office has announced a program to save homeowners with the funds from the national settlement to assist home owners so they can save their homes. The program is called the Mortgage Assistance Program.
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The Mortgage assistance Program begins September 15, 2014 for residents of Long Island, New York and the remainder of the state can get into the program as of October 15, 2014. The state will give a defaulted borrower up to $40,000.00 to save their home. This program should decrease some of the homes that are in foreclosure.
About The Author
Glenn Michaels - As an NAMP® staff writer, Glenn Michaels is a mortgage underwriting instructor for Mortgage Underwriter University (www.MortgageUnderwriter.org). As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years. If you're interested in becoming a writer for NAMP®, please email us at: contact@mortgageprocessor.org.
