Robo-Pests: Lending Flaws and NYC Foreclosure Rates

Posted on November 30, 2010 by in Foreclosures, Mortgage Crisis


View New York Neighborhoods With Most Foreclosures in a larger map

Nothing can throw a wrench in well-laid plans quite like losing the roof over your head.

Lawyers in New York and nationwide are now discovering that a dramatically flawed system was implemented at many banks during the period of high-volume foreclosures.

The flawed process involved faulty paperwork and robo-signing – that is, paperwork done by unqualified workers taught only to follow orders. Lenders are now having to answer for these errors, and many have suspended all foreclosures while they investigate – and are investigated. Meanwhile, the foreclosure crisis – brought on by the burst of the housing bubble and exacerbated by the robo-signing catastrophe, has already wreaked havoc.

Below, you can see that effect for yourself.  The map  below points out the top ten neighborhoods affected by the foreclosure crisis in New York City, according to the New York City Department of Housing Preservation & Development and the New York City Department of Planning numbers from 2008, which is the most recent data available.

The neighborhoods marked here have each experienced dramatic change as the real estate market plunged. Click on each placemark to see the number of foreclosures for each neighborhood.