The region hit by superstorm Sandy was already coping with rising numbers of foreclosures, and the storm’s devastation is likely to further delay a recovery in the housing market, according to a national data provider.
New York experienced a 123 percent rise in foreclosure filings in October compared to the same period in 2011, according to a RealtyTrac report scheduled to be released Thursday. The year-over-year increase was 140 percent in New Jersey, and 41 percent in Connecticut. In all three of those states, lenders must obtain court approval to foreclose, which protects homeowners but also imposes delays, according to RealtyTrac.
The 34 counties in New York, New Jersey and Connecticut that were most affected by the storm saw a 92 percent year-over-year increase in foreclosure filings last month, RealtyTrac said. The storm hit on Oct. 29.
“Unfortunately the three states dealing with the biggest rebound in deferred foreclosure activity — New Jersey, New York and Connecticut — also had to deal with the devastation to homes inflicted by superstorm Sandy,” Daren Blomquist, vice president of RealtyTrac, said in a statement. “The foreclosure moratoriums being put into effect as a result of the storm will likely extend the already-lengthy time to foreclose in these states, further prolonging a fundamentally sound housing recovery.”
The federal Department of Housing and Urban Development has granted a 90-day moratorium on foreclosures in areas affected by the storm, among other steps to assist homeowners in federally declared disaster areas.
Photo: Flooding along South Bay Street in Lindenhurst. (Nov. 8, 2012)