Foreclosures Skyrocket

NY’s AG gets $1.9M as foreclosures rise

While foreclosures nationally fell 3 percent last year, New York City filings climbed 19 percent, or 13,116 properties, according to a new report.

The outer boroughs were the hardest hit, with Queens seeing a 164 percent rise year-over-year and Staten Island rising 19 percent over the same time frame, according to RealtyTrac, which expects another spike this year.

As the new numbers were released, New York Attorney General Eric Schneiderman announced a paltry $1.9 million settlement deal with robosigning giant Lender Processing Services.

Put another way, LPS, which earned operating income of $290 million in 2011 on revenues of $2.1 billion, has to pay a penalty roughly equal to the average sale price of a Manhattan apartment — for misdeeds affecting New Yorkers statewide. LPS shares rose 1.64, to $24.04, Thursday on the news.

The $1.9 million is New York’s portion of a $121 million multistate deal with LPS and its subsidiaries, LPS Default Solutions and DocX, to settle for misdeeds (including robosigning), overhaul its business and fix mistakes.

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