Foreclosures surge as banks end self-imposed hiatus  

Banks had hit the pause button after the robo-signing scandal erupted two years ago. Now they are back in full swing.

By / NEW YORK DAILY NEWS
A foreclosed home that is for auction is shown Friday, March 6, 2009, in the Queens borough of New York. The property is scheduled to be sold at a foreclosure auction Sunday, March 8, in New York.  (AP Photo/Frank Franklin II)

Frank Franklin II/AP

Forclosure notices surged 56% in the third quarter as banks ended their self-imposed pause after the robo-signing scandal.

The foreclosure crisis has raised its ugly head again in the city.

Foreclosure notices surged 56%, to 3,662, in the third quarter as banks got back to business after a self-imposed hiatus, according to RealtyTrac.

Banks had hit the pause button on foreclosures after the robo-signing scandal erupted two years ago. Now they are back in full swing.

Foreclosures in New York State resumed later than in other parts of the country because New York is a judicial state, meaning foreclosures are court cases individually reviewed by a judge, which slows down the process.

"As we've been expecting for some time, the other shoe is finally dropping in New York," RealtyTrac spokesman Daren Blomquist told the Daily News.

In five out of the last six months, foreclosure activity in New York has increased on a year-over-year basis, following 26 straight months of year-over-year declines, Blomquist said.

Queens saw a massive uptick, with 1,370 foreclosure notices in the third quarter of 2012 - nine times the amount in the same period a year ago.


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