SYRACUSE, N.Y. (NCC News) — Foreclosure filings in Central York have skyrocketed for the first quarter of 2023.
The reason for this increase is because of the foreclosure moratorium that went into effect during the pandemic and ended January 15, 2022. Banks were requiring full loan repayment from homeowners, and many people didn’t have thousands of dollars readily available to make missed payments. This caused a lot of homeowners to foreclose on their home.
Three states in the country have the highest foreclosure starts for 2023. New York (4,674), Illinois (3,549) and California (2,120).
“These banks don’t necessarily want to foreclose on these properties. It costs them time; it costs them money. It takes years especially in New York to go through the foreclosure process,” Jake Kippen said.
Kippen is a licensed real estate broker in Syracuse, and he believes that foreclosures can be eliminated. He says that homeowners should communicate with their perspective lender such as a bank and work out a deal or a plan to repay their loan back.
“If people had a job and had a better job with their wages going up, it’s unlikely they’d be defaulting on their mortgages,” Syracuse University economics professor Carl Schramm said.
People defaulting on their mortgage loans is a sign of a weak economy, as well as a decrease in jobs and wages falling. Demand for labor and rising wages are both signs of a strong economy.
There are options for anyone who’s currently foreclosing or did foreclose on their home. A short sale is one way that an individual going into foreclosure can sell their home, make a profit and walk out of the sale in good standing.
