FARMINGTON HILLS, MI – December 22, 2009 – (RealEstateRama) — GreenPath Debt Solutions, a nonprofit consumer credit counseling service with seven offices in the greater New York City area, recently released mortgage delinquency data regarding its clients in New York State and New York City.
New York State clients with past due mortgages jumped 52% percent and New York City clients with past due mortgages jumped 58% in 2009 versus 2008.
“The first wave of defaults was the upturn of adjustable rate mortgages, while home values declined,” said Kathy Conley, GreenPath housing counselor. “The next wave was the ‘exotic’ loans, which include interest only and option adjustable rate mortgages, many with negative amortization.”
Conley went on to explain that prime mortgage loans are now defaulting, including traditional 30-year fixed interest rate loans at low interest rates. “This is primarily due to decreased income in the household due to lay-offs and overall job loss in the state,” she concluded.
NEW LEGISLATION NOW INCLUDES ALL HOME LOANS
Conley also anticipates that new state legislation will lead to an increase in inquiries surrounding foreclosure to credit counseling groups. “New York has now expanded the state’s foreclosure legislation to include prime mortgages,” she remarked.
The legislation requires the 90-day pre-foreclosure notice currently sent for subprime loans to be expanded to include all home loans. This measure allows additional time for many more homeowners to work with their lenders to find an affordable solution to prevent unnecessary foreclosures.
“Based on the new legislation, we anticipate calls to increase at GreenPath and other groups like the New York State Comptroller’s Foreclosure Prevention Helpline,” Conley said.
STATISTICS RELATED TO NEW YORK CITY AND NEW YORK STATE CLIENTS
Statistics related to New York City GreenPath clients:
2008 clients with past due mortgages – 930
2009 clients with past due mortgages – 1,466
2008 v 2009 clients w/ past due mortgages – +58%
Statistics related to New York State GreenPath clients:
2008 clients with past due mortgages – 3,697
2009 clients with past due mortgages – 5,630
2008 v 2009 clients w/ past due mortgages – +52%
GREENPATH OFFERS HOUSING SOLUTIONS
GreenPath reminds residents that they can receive free counseling on the following topics:
Mortgage Default and Delinquency Housing Counseling. GreenPath’s certified housing counselors can help homeowners get back on track, if they are behind on their mortgage payments. Counselors work with clients to establish a budget, set priorities and determine strategies for saving their home.
First-Time Homebuyer Housing Counseling
GreenPath can help consumers prepare for buying a first home. Certified counselors will educate on the home buying process, and help prepare for the requirements and responsibilities of home ownership.
Reverse Mortgage Housing Counseling
Available for homeowners over the age of 62, reverse mortgages use the home’s equity to increase monthly income. GreenPath’s certified housing counseling experts will explain reverse mortgages, analyze the consumer’s situation, and help determine if it is an option for consideration.
Home Equity Loan Housing Counseling
Home equity loans can look quite enticing when you are searching for a way to pay down your debt. GreenPath can help you determine if a home equity loan is the best solution for your personal situation. If it is, our housing counselors can provide valuable information to help ensure that you don’t run into a similar predicament in the future.
For more information, contact GreenPath Debt Solutions at (866) 648-8122.
GreenPath Debt Solutions, a nationwide nonprofit consumer credit counseling service, has been helping people resolve financial problems and achieve goals through financial counseling, debt management and education since 1961. Headquartered in Farmington Hills, Mich., GreenPath operates 43 full-time branch offices in Michigan, New York, Wisconsin, Illinois, Indiana, Florida and Arizona and delivers licensed services throughout most of the United States over the Internet and telephone. More company information is available at www.greenpath.com or by calling (866) 648-8122.