New York homeowners are in default mode — again.
The city leads the nation in repeat foreclosure filings
And the winner in all this is the residential mortgage servicing industry, which collects monthly payments and cashes in on fees for every homeowner’s misfortune.
The number of repeat foreclosure filings in New York City far outstrips that of other major cities like Los Angeles, while New York state is No. 1 for repeat foreclosures, outpacing every other state and the US as a whole.
In a report prepared exclusively for The Post, Attom Data Solutions found that in New York City last year, roughly 4,900 — or more than half of all new foreclosures filed — were repeats, up from just 5 percent in 2008.
Statewide, 73 percent of the 49,200 new foreclosure cases — or roughly 35,916 foreclosures — over the past 12 months were repeats, up from 20 percent in 2007, according to Black Knight, which collects data reported by servicers.
Refilings, which occur when borrowers land in foreclosure more than once for the same property, can happen for a host of reasons, from a failed loan modification to a foreclosure being dismissed when the servicer can’t prove it owns the loan and later refiles the case.
Refilings are rife in eight of the top 10 neighborhoods with the highest rates of foreclosure notices in 2015, including Highbridge, Morrisania and East Tremont in the Bronx, and Brownsville and East New York in Brooklyn.
“The same owners in the same properties … are stuck in distress that never seems to resolve,” said Daren Blomquist, senior vice president at Attom, adding, “It’s more acute in New York than in other markets.”
Re-defaults, which occur when a borrower falls back into default after becoming current again on payments, are rising as servicers reach ever deeper into the pool of distressed debtors, modifying loans for borrowers with poor credit and multiple prior failed modifications, says ratings agency Fitch.