Foreclosure filings in New York State dropped 40.56 percent for 2011 compared with 2010, RealtyTrac reports. But processing delays caused by disputes over lender documentation practices -- the so-called robo-signing controversy -- played a role in the decline, the report says.
The average time it takes to complete the foreclosure process in New York increased 37 percent during the same period, and New York properties foreclosed in the fourth quarter took an average of 1,019 days to complete the foreclosure process, the longest of any state.
“Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year,” said Brandon Moore, RealtyTrac's chief executive.
But lenders began picking up the pace at the end of the year, he said. “We expect that trend to continue this year, boosting foreclosure activity for 2012 higher than it was in 2011, though still below the peak of 2010.”
In Nassau County for 2011, the foreclosure rate was 1 in every 115 housing units with a foreclosure notice, ranking it second in the state, compared to one in every 92 units with a foreclosure notice in 2010, when it was ranked sixth in the state.
In Suffolk, the foreclosure rate was 1 in every 143 housing units with a foreclosure notice, ranking it fifth in the state for 2011. For 2010, the foreclosure rate was 1 in every 67 housing units with a foreclosure notice, ranking Suffolk second in the state.
Foreclosure filings in the United States for 2011 were at their lowest since 2007. In 2011, 1.9 million properties received foreclosure filings, including default notices, scheduled auctions and bank repossessions. That’s down 34 percent from 2010. Foreclosure activity in 2011 was 33 percent below the 2009 total and 19 percent below the 2008 total.
U.S. properties foreclosed in the fourth quarter took an average of 348 days to complete the foreclosure process, up from 336 days in the third quarter and up from 305 days in the fourth quarter of 2010. The length of the average foreclosure process has increased 24 percent from 281 days in the third quarter of 2010, when lenders began to review their foreclosure procedures in the aftermath of the robo-signing controversy.