Mortgage Frauds Prowling Round New York City
Posted on August 4, 2008
Filed Under Repo Homes | 13 Comments
According to a report of the State Commission of Investigation mortgage frauds have been successfully prowling round New York City during the last few months. The report admits that there are lapses in the state laws that are leading to worsening of the mortgage crisis with fraudsters getting the upper hand. The laws are not giving sufficient protection to the borrowers at risk from foreclosures.
The problem has its roots in the sub-prime loans having floating interest rates. In 2007, according to the report, nearly 59% of the foreclosure filings in New York came from the sub-prime category. According to the report, appraisers being in collusion with servicers and brokers mired the problem. They falsely increased the value of the houses to be mortgaged lured by high commissions and generous loan amounts. The gullible and the naïve were pushed into take loans they could not fully understand.
During 2007, of all the foreclosed units, half came from the repo homes listings. Some pockets were more affected than others. Brooklyn and Queens were accountable for 36% of all the postings causing them to rank first and second respectively in foreclosure placings. Suffolk and Nassau counties followed close behind with third and fourth positions.
Westchester stood 6th in the foreclosure listings with 732 postings and accountable for 5.2% of the foreclosures in the state. Rockland and Putnam ranked 11th and 16th respectively. The 6th and 5th positions were taken by Monroe County and Rochester City respectively during the first quarter of 2008. The county noted 2,000 foreclosure filings having the highest number in upstate New York. Rochester City showed 815 filings.
The report focuses on the fact that foreclosures have been concentrated in some urban pockets. The Afro-Americans and the Hispanic people are among the worst victims. They are twice as likely to have been targets of mortgage frauds than their White counterparts. “Shady mortgage brokers” coerced even those among the minorities who were qualified to take safer loans to swallow these risky ones.
Governor David Patterson will soon be signing a law to deal with the burgeoning housing crisis. Borrowers will get a 90-day grace period to work out matters amicably and realistically with lenders. Questionable loan practices will be made illegal and liable for severe penalties. Sarah Ludwig of Neighborhood Economic Development Advocacy Project in New York City said, “The law that the governor is going to sign is landmark legislation.”
Search Repos
- New York Repo Homes
- Brooklyn Repo Homes
- Buffalo Repo Homes
- New York City Repo Homes
- Rochester Repo Homes
Popularity: 9% [?]
Comments
13 Responses to “Mortgage Frauds Prowling Round New York City”
Leave a Reply
[...] to the findings of ForeclosureRadar. It tracks foreclosures in the state. The total amount of mortgage loans, including those in foreclosure, is worth $346 [...]
[...] risk and trouble. The renter may be current in paying rent but the landlord may be defaulting in mortgage payments. This is happening everywhere more and more right across America. The tenants for no fault [...]
[...] Charles Schumer. This new law will give the judges dealing with bankruptcy cases the right to alter mortgage terms. Citgrou has been under scrutiny from the members of the new Congress. The Democrats have [...]
[...] mortgage brokers were the key players in engulfing the Hispanics with [...]
[...] Further mails followed as if in confirmation of the fact that the lender had been told about the mortgage modification and steps were taken to process the same. Loan modification documents were also [...]
[...] battling recession. To help them the government at all levels is taking action to provide tax and mortgage relief. The flow of frozen credit would also ease the situation and the administration is taking [...]
[...] to have been sucked into a vicious cycle. Garfield County is all set to make a record number of foreclosure filings. 89 foreclosures have already been filed. This is more than what was filed in 2007 and 19 short of [...]
[...] led to foreclosures closing in on migrants. In 2007 Jorge and Marina Schiefer had sought to get a mortgage from Countrywide Financial to buy a two storey modest house on Valley Road. Loan officer Madeline [...]
[...] were waiting for the details of the mortgage modification proposal. Now with the stimulus package firmly in place, banks are repossessing houses [...]
[...] years have dropped by 0.17% in comparison to the previous month. Correspondingly interest rates of mortgage loans have fallen [...]
[...] they can get to veer around the problems that might crop up in the process. Kevin Walker of Mortgage Report said, “People are confused. Frankly, lenders are still trying to figure out the procedures [...]
[...] Uhlfelder writing in the article said that according to Credit Suisse Alt-A and option payment mortgage loans amounting to $1 trillion is all set to increase rates during the forthcomiteng 30 months. These [...]
[...] Overture Technologies, Rapid Reporting Verification Company, and SigniaDocs. Now information on loan modification will be available easily through this [...]