More New Yorkers falling behind on home loans

The mortgage loan delinquency rate in Brooklyn, the Bronx and Queens in the final quarter of 2010 was up from year-earlier levels, according to a recent quarterly analysis. The uptick could well lead to a rise in foreclosure activity in coming months.

Brooklyn recorded the greatest increase in the percentage of borrowers 60 or more days past due with their mortgage payments with a 1.05 percentage point increase last year, according to data compiled by TransUnion, a Chicago-based credit and information management company. Borrowers in the Bronx fared better, with an increase of only 0.62 percentage points, while Queens showed the smallest increase with a 0.55 percentage point increase. Manhattan was the only borough to see a decline in delinquencies—with a slight drop of 0.04 percentage points in the period.

Meanwhile, New York state, for the first time since 2005, posted a delinquency rate that, at 6.50%, exceeded the national average of 6.41%, according to TransUnion. While the national figure fell 0.48 percentage points last year and 0.03 percentage points in the final quarter, in New York the rate rose 0.40 percentage points for the year and 0.17 percentage points in the quarter.

“The data reveals that there is more of a supply of distressed homes in New York state, which will put downward pressure on home prices,” said Tim Martin, group vice president of the U.S. Housing Market in TransUnion’s financial services business unit.

Despite last year’s rise in mortgage delinquencies in New York, foreclosures dropped drastically in the city as a whole, as well as in each borough. According to PropertyShark.com, new foreclosures were down 59% last month from a year ago citywide. But experts warn that the decline may not accurately represent the market conditions because banks implemented a temporary freeze in filings to examine their foreclosure processes. http://www.crainsnewyork.com/article/20110218/REAL_ESTATE/110219862#