In the last ten months New York City has seen a tremendous spike in foreclosure lawsuits and auctions. While foreclosure rates dropped in the rest of the country, New York City’s has risen by 25 percent since last year according to the national foreclosures listings company RealtyTrac.
Nassau County in Long Island has been particularly hard hit. People who rushed to buy homes while prices were high are now struggling to pay their mortgages and their taxes. It ‘s estimated that property taxes in the Long Island area average about $9,000 a year.
The resources of the courts are being pulled very thin by this wave of foreclosures, as real estate foreclosure lawsuits now account for a third of all civil cases being filed in New York City. There have been instances of looting abandoned homes reported in Nassau County.
Those who have worked hard to avoid foreclosure in New York City have also recently received some unwelcome news. The Mortgage Forgiveness Debt Relief Act, passed in 2007, is set to expire at the end of the year.
If this happens, close to 100,000 New Yorkers who received aid in the form of debt forgiveness through the Federal Government, might have to pay back income tax on the forgiven debt. This could mean huge tax bills for individuals who are already struggling.
Under this impending stress, many are turning to third parties for advice on how to deal with their situations and find reliable and less costly methods to avoid foreclosure such as loan modification and Short sale.
The experts at Premierrealestatenyc.com will be happy to discuss these and other options you may be considering in a free consultation.