New York’s Serious Delinquency Rate Exceeds National Average

According to Mortgage Bankers Association data, the rate of new foreclosures in the second quarter of 2013 was 1.07%, a record figure going back to 1979. This was higher than the national average of 0.64%.

It was also reported that the Empire State had the third-highest serious delinquency rate in the nation with 9.2%, followed by Florida (13.5%) and New Jersey (12.3%). Home loans that are more than 90 days past due are considered seriously delinquent.

In New York, homes cannot be seized by the lenders without court approval, as is the case in New Jersey and Connecticut. In judicial states, the average rate for loans in foreclosure was 5.59%, which is three times the rate for non-judicial states (states which do not require approval from the courts to seize a home) at 1.86%.

These statistics show that what is happening in New York runs counter to the nationwide trend. The MBA reported that the number of seriously delinquent loans across the U.S. dropped to a five-year low in Q2 2013 to 5.88%, compared to 7.31% the same quarter last year. It was the lowest level since Q3 2008, when it was 5.17%.

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