Foreclosures - The Counties Of Otsego And Delaware Suffer Rising Foreclosures

Otsego And Delaware Foreclosures

April 8th, 2008

Like other parts of the US the two counties of Otsego and Delaware are seeing foreclosures on the rise. The future seems bleak with lenders set to increase mortgage rates and many more house owners might lose their hearths and homes. The courts in both counties are overwhelmed with foreclosure suits. In 2008 a total number 31 cases have been registered during the first quarter. The whole of last year had 103 foreclosure filings and there were 96 in 2006. The plaintiffs were mortgage giants like Chase Home Finance, Wells Fargo, Citimortgage, HSBC and US Bank amongst many others. The foreclosure process begins to roll as soon as payments from one to three months are missed. Many sub-prime mortgages have hidden fees. The borrowers are generally unaware of their rights.

Rising food and fuel prices are aggravating matters. The income of two family members is not sufficient to meet all requirements in addition to mortgage commitments. Lay offs are on the rise leading to worsening of family income.

New York state like other parts of the country is suffering badly from the increasing number of foreclosures. Although each foreclosure has a different story to tell the general reading is that the sub-prime mortgage with floating rates of interest are largely to blame for this debacle. Many were contracted from 2005 to 2006.

Refinancing becomes difficult when the breadwinner becomes ill, dies or is laid off. Another factor is that the falling real estate market causes the value of the house to fall below the loan amount. Those who have refinanced once cannot do so again.

The Federal Reserve Bank has launched a website giving information and details about the position of sub-prime loans. This will enable communities to locate the worst intense areas and act accordingly by taking preventive measures. In New York there were 18.5 loans per 1,000 houses in December 2007. Of these 11.3 were in foreclosure and 51% belonged to the sub-prime category.

The local banks recorded fewer delinquencies. It is their personal filial approach that has prevented larges scale debacle in the locality. In sharp contrast is the impersonal indifferent attitude of the mortgage giants.

Another cause is the current life style of the people that are making them give more importance to car loans than house mortgage commitments.