George Wolf
Oct 20,2008
In: Foreclosures

Bronx Foreclosures

In 2006 and 2007, the Bronx foreclosures hit the largest foreclosure filings and recent studies show that most part of the loans which went into the foreclosure had no more than two years behind. Thus, nowadays the Bronx foreclosures have at its roots loans that were made recklessly, without taking into account the borrower’s capacity to pay his debts. Most of these borrowers are thought to be from Black or Latino communities and, even though they qualified for more reasonable loans, they were trapped into mortgages that created big profits for loan officers.

Bronx foreclosures are predominantly supplied by minorities which are considered to be more likely to own subprime mortgages, in comparison to other borrowers from other neighborhoods. The rate was at about 25 percent in the year of 2005, while the average national rate goes around 17 percent, according to a survey which analyzed the Bronx foreclosures. The Center for Responsible Lending said that the value of many houses has rapidly and essentially decreased because of the Bronx foreclosure homes which present a lower price and are therefore more attractive to possible buyers. The Bronx foreclosures gather approximately 200 mortgages per month and have much impact on the other inhabitants of the neighborhood who are also trying to sell their houses, a reality outlined by Senator Jeff Klein report issued on the Bronx foreclosures matter. The Bronx foreclosure problem asks for solutions from the part of the banks which need to put more pressure in solving this situation, to take responsibility for these foreclosed homes and to maintain balance in the Bronx foreclosures system; one solution would be for banks to diminish the interest at mortgage rates, but this measure does not favor the broker’s profits, so the Bronx foreclosures continue to generate crisis.

Bronx foreclosure is affecting especially the East Bronx, but an alarming increase of Bronx foreclosures is present also in the Northwest Bronx and in the South part of the Bronx. In order to teach homeowners how to avoid letting their properties be part of the Bronx foreclosure mechanism, many workshops are being held; here, homeowners have the possibility to speak to counselors and contribute to the Bronx foreclosure prevention programs.

In order to stop the Bronx foreclosure problem from getting more and more serious, a strict legislation needs to be implemented. Senator Jeff Klein is interested in this matter and states that more and more complaints have reached his office, complaints from people who are on the edge of giving their house on the hands of the Bronx foreclosure market. This situation is caused by the adjustable rate loans, which start from a low level and suffer huge increase in time. Most affected by the Bronx foreclosures are the neighborhoods: Highbridge, Fordham and Morrisania, of which Fordham has the largest number of Bronx foreclosures. The overall Bronx foreclosures percentage is of 24, representing the rate on one to four families owning a home. Besides the individual homes, there are also Bronx foreclosures belonging to the government and Bronx commercial foreclosures.

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