One in 10 NYC mortgages in serious delinquency

Is this going to foreshadow what is going to happen to the beach, westside, and south Orange County areas of California?

One of every 10 New York City mortgages were 90 days delinquent or in foreclosure as of the end of the first quarter, according to a study released by the New York Federal Reserve.

The NY Fed studied data on roughly 483,000 mortgages. The ratio of seriously delinquent loans did vary by borough. In Manhattan for instance, one in 50 mortgages were in serious delinquency. But in Brooklyn and the Bronx, one in eight loans fell into serious trouble.

New York, a judicial foreclosure state, experienced a backlog of roughly 80,000 foreclosure cases. Each property a bank repossessed in March spent an average 900 days in the system. An October rule change for banking attorneys kept the caseload from ballooning to as high as 100,000 by the end of the summer. By March, though, with the rule in place for about six months, the courts whittled the backlog down to 74,000.

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