LI foreclosure-related filings fall, again

For the second consecutive month, foreclosure-related filings on Long Island fell in August, data released Wednesday show.

But local foreclosure attorneys cautioned that it was no time to celebrate because the lower numbers reflected a lull in foreclosure proceedings.

The Island had 727 foreclosure-related filings in August, down 6 percent from the month before and down 49 percent from a year earlier, according to RealtyTrac, an online foreclosure data and listing site. By contrast, the filings nationwide rose 7 percent to 228,098, but were down nearly 33 percent from a year earlier.

Among the categories, August default notices on Long Island fell to 629, from 682 in July and from 1,230 a year ago. Scheduled auctions rose to 58 in August from 51 in July but fell dramatically from 73 a year earlier.

The number of bank repossessions, 40 in August, remained the same as the month before, but were significantly down from 111 the year before.

Despite the declining numbers, local lawyers said Long Island hasn't turned the corner on its foreclosure problems. They said lower numbers most likely reflect that lenders are still deciding how to proceed after the paperwork controversy last year that prompted some banks to halt foreclosures temporarily.

"The banks are regrouping to see how they are going to meet the new requirements for the documents they file," said R. David Marquez, whose Hempstead Village law firm represents homeowners. "It creates a false image. But once the issues get resolved, the foreclosures are coming."

That view was echoed by Heath Berger, a partner at Steinberg, Fineo, Berger & Fischoff, a Woodbury-based firm whose specialization includes foreclosures.

He said his firm still receives a high volume of calls from homeowners in arrears who are puzzled and worried about what to expect next, given the lull in proceedings.

"The big question clients ask me all the time is: 'I haven't paid my mortgage in six months, and I haven't heard from the bank. Do you know what is happening' "?

Attorney Gale D. Berg, who runs a foreclosure-prevention clinic for the Nassau County Bar Association, said the slowdown has created a false sense of security among some homeowners. She noted that attendance at Monday's monthly clinic was lighter than usual.

"The homeowners don't feel that urgency or panic they were feeling when all of this started," she said. "But I think they are wrong. It will pick up."

And she added, "I feel like I am waiting for the other shoe to drop, and all of a sudden we are going to be inundated again."