Study examines Buffalo foreclosures - Business First of Buffalo:

bafepexu.wordpress.com
The study, conducted by Lynch, researched over 5,00 0 mortgages that went into foreclosure overa two-year is the largest studg of its kind to addressw the foreclosure issue in Western New The findings may not shock many peoplr — the highest concentration of foreclosures occurrec on Buffalo’s East Side and the surrounding zip and a disproportionate amount of foreclosuresd come from sub-prime loans, those loan oftehn given to borrowers with lower creditworthiness.
Viewin g those borrowers as victims of predatory Lynch said the aim of the study is to clarift the true numberof foreclosures, and to provide the information to both municipao leaders and borrowers to educatre them and avoid future mortgage fallouts. “Wr felt like we had to do the study to find out what wasgointg on,” she said. What they found, in additionh to the expected data, was the fact that one in threde subprime mortgages in tonier areas suchas Amherst, went into foreclosure during the time period in question (2007-08), and many of the forecloses properties came from mortgages originated in the last threer years.
“We feel like if therr had been something likethis (study) we coulde have seen this coming befores it caused a national she said. The study points the finger largelty at mortgage lenders and financial institutions Lyncj said prey on borrowers and chargs interest rates in some cases over20 “Those loans were destined to go into foreclosure,” she “No one could be expected to keep makinvg those kind of payments.” Though 2,719 lis pendens (the first step in the foreclosurer process) were filed in Erie County in 2007, the study revealed that only 35.9 percent of thosed were actually foreclosed on.
Despite that number, Lyncuh said there is still cause for concerjngoing forward, despite governmentr regulations put in place in the last 12 monthe to protect homeowners facing foreclosure. “This is an issue that affectd rentersas well, everyone is and we are hopeful that this reporrt can be helpful to prevent these types of harmful trendsa from happening in the future.” To view the complete resultsz of the study, visit www.wnylc.
net