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NY Tops Nation For Defaulting Home Mortgages

By Admin
Thursday, July 15, 2021

As a state and city, NY is the number two spot in the country for defaulting house payments and pending foreclosures. Property taxes are certainly a big part of this. Despite the challenges facing homeowners in the Empire State right now, there is one thing you can do about it.

 

New Yorkers Struggling To Make House Payments

 

According to the latest data from CoreLogic, NY state has more than double the national average of home mortgages that are late on payments or are in foreclosure. It is second only to Louisiana. More than double the percentage in states like Wisconsin, Utah and Idaho. 

 

The NYC metropolitan area has almost more than double the percentage of home mortgages that are 30 days or more past due, than Boston, San Francisco and Denver. This rate is only second to Miami. 

 

Why Are New York Homeowners Struggling So Much More Than Everyone Else?

 

In our last post we covered a new Bankrate survey which showed that almost 65% of all millennial property owners are now suffering from homebuyers’ remorse. 

 

The leading cause of this regret among those surveyed is other housing related costs. Think maintenance, repairs and property taxes. 

 

Many new homebuyers just don’t account for these expenses when buying a home. They certainly don’t budget for constant increases in property taxes. 

 

Extreme inflation is also eroding affordability, and leaving homeowners less disposable income to cover these rising and unexpected expenses. In the past year construction materials for home improvements have risen by 30% in many cases. Some analysts predict that the current administration’s proposals will make taxes 7x higher than in 2020.

 

Other reasons owners gave for regretting their home purchases include, overpaying, housing payments that are too high, buying a place that is too small, and bad location. 

 

The Challenges Facing Distressed Homeowners In NY

 

Zillow home value data suggests that NY has become one of the least desirable places to buy a home in the US. 

 

Prices are at epic highs, but few want to be the one holding the hot potato as the market cools. That means that many may not only have no home equity, but some could quickly sink into a negative equity situation. That is certainly true if you add in the costs of selling a home. 

 

It would mean having to pay money out of pocket at the closing just to sell your home and get out from under the larger debt. 

 

With all of the anti-landlord legislation in NY, most owners are now also too scared to lease out properties and go to live somewhere else. 

 

What To Do

 

The number one thing that all NY homeowners can do is to challenge and reduce your property taxes. This way staying is more affordable. Savings can be used to offset increases in maintenance, remodeling and repair costs. Lower property taxes will also make your home more competitive and attractive on the market against other listings if you do attempt to sell.  

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