LI foreclosure cases 28% of state's

Long Island is home to almost three out of every 10 foreclosure cases pending in New York State Supreme Courts, the latest data show. As of mid-October, Nassau had 9,488 cases, and Suffolk had 11,279. That's 28.3 percent of the state's 73,394 cases.

That rate is higher than LI's share of mortgages. According to census data, there are more than 522,000 mortgages on the Island, which translates to 20 percent of the state's 2.58 million mortgages, or two out of 10.

The Island's higher foreclosure rate is a sign that home prices here were more inflated during the buying boom. That suggests more LI borrowers owe more than their properties are now worth.

But landing in court is not so bad for homeowners, said Paul Lewis, chief of staff for the state's top administrative judge, because the borrower and lender are scheduled for mandated settlement talks with a court-appointed referee as soon as the case hits the court. The referees bring up legal and financial points to press both sides to settle. "It helps everyone to have them conference sooner," Lewis said. "It's harder to settle the case when the debt is 50 percent higher than it was three months ago."