Reasons for Nassau County Foreclosures
Nassau County foreclosures for May2008 have been reported at 422 as compared to 399 the previous year. Foreclosures across the country are increasing drastically and this is having a great socio economic impact. There are several reasons that the Nassau County foreclosures have speeded up.
Sub prime mortgage loans
Right from 2004-2006, most mortgage loans were subprime loans. This means that the mortgage loans that were given out were really high interest rate loans. More than that people opted to take Adjustable rate Loans (ARM) and lenders were pushing (some experts at that point called them great and exotic loans) the higher cost loans. There was scant regard by lenders (other than many banks) for financial discipline. In fact according to a Nassau County Government report the Nassau County foreclosures and subprime mortgage debts pose a bigger economic threat than terrorism. In fact according to the same report, the slowdown will continue through 2008.
Oil prices and food prices have risen sharply
With oil prices rising, it has crossed the $145 per barrel, the gas prices have more than doubled since the past few months. Households are no longer able to afford the rising costs. In fact many people have most likely stocked up on the gas prior to the Independence Day weekend. Coupled with that consumer price index and the prices of food have also risen sharply. This has led to people falling back on their mortgage payments leading to Nassau County foreclosures. This has already made a dent in the monthly budgets of most of households. There is definite cutback on all the activities by the homeowners.
Employment is been cut back leading to Nassau County foreclosures
Though the report doesn’t suggest that there are real recessionary trend for Nassau County, even then, employment is seen been cut back. Just to highlight the problem, Starbucks has ordered the closing of almost 500 branches across the country. This is likely to affect almost 10,000-12,000 of its employees. Similarly many companies are also doing cutback on their HR, leading to Nassau County foreclosures.
New home sales have considerably fallen to 2003 levels
Nassau new house sales have fallen to pre2003 levels. With Nassau County foreclosures speeding up, most people don’t have the money to invest in the real estate. While those who do have the money want to invest in the Nassau County foreclosures hoes as they can get really great deals on them. Some of the Nassau County foreclosures are even going for less than half of their purchase price. Those who are looking to invest in the Nassau County foreclosures should look at the various websites that list the properties.
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June 5th, 2009 at 2:48 pm
[...] represented a tiny fraction of all the foreclosed houses in the state. In Queens there were 556 foreclosures but the rate of this borough fell by 11% in comparison to [...]
September 10th, 2009 at 8:04 pm
[...] two avenues which may be taken when investing in Nassau County bank foreclosures have different goals, one is to make large sums of cash money and the other is to grow a [...]