Can Kings County New York Find A Foreclosure Cure?
Kings County, New York, is home to the area known the world over as Brooklyn. Predominately a minority neighborhood the residents of the area hold a higher percentage of subprime mortgages than any the other boroughs, and most of the country in fact according to a local university study. In some of the poorer sections over 50% of new purchase loans used subprime mortgages. This statistic does not bode well considering how the ongoing foreclosure situation continues to drive down home values as well as creating record numbers of unsold homes in the Multiple Listing Service (MLS).
Over 44 million homes in the United States will experience property devaluation as a result of foreclosures in their neighborhoods. Forty-two counties in the United States can expect to see their property tax base erode by more than $1 billion. And households located in proximity to lost properties could see the value of their property decrease by $5,000, on average. Kings County ranks third in the entire country in this category.
What are the future real estate prospects for King County? New Day Consulting, a local real estate investors group, offered a "man on the street" opinion of what is happening in Kings County.
Not one segment of society has gone unscathed. The rich and powerful are being hit just as hard as the middle-class. The current foreclosure meltdown isn't playing favorites. The only bright spot, if there is one is that Kings County is about on the same level, if not moderately above, with the rest of the nation.
Local experts all agree that the root cause of the ongoing problem is the same one affecting every other county in the nation; as 208 progresses more adjustable rate mortgages (ARM's) are resetting with more getting ready in the upcoming months. Coupled with the combined recent spike, along with the moderate decrease in property values, has made the entire situation almost untenable and geatly affects ones ability to stop foreclosure in Kings County.
It was also learned the period of rising foreclosures began a notable increase mid-year 2007, had an increased rate this spring, and it is being forecast that we have not seen the peak and that positive increase in the trend may not flatten for another three years. In fact the past 12 months has seen over a 50% increase
When asked if the state had taken any steps to alleviate the pressure New Day Consulting responded that they feel the state has taken some steps, but may be too little too late in that the offering has been a Band-Aid type legislation thus far, and even that is poorly written. Some feel it has thus far been more of a knee jerk reaction without providing long term positive effect by politicians just looking to get their names on legislation before Election Day.
Kings County, and Brooklyn in particular, continue to feel the foreclosure squeeze. Unless there is a dramatic turn of events, or the state legislature becomes more proactive the situation continues to look grim.