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A monthly report that compiles data on foreclosures in shows a 374 percent increase in July in Queens compared to last year.

There were 109 repossessions this year, which were mainly residential, compared to 23 July 2007, according to information compiled by RealtyTrac, an online national database of foreclosures. The numbers reflect the amount of properties that are repossessed by the foreclosing lender. New York was ranked number 30.

“We have a nationwide network of data arbitrators who are pulling these from local county-level records,” said Daren Blomquist, marketing communications manager.

He said there is a document called a Sheriff’s deed that conveys the property to the lender at the time of the repossession and once it transfers to the buyer, the arbitrators upload the information to the database.

“Traditionally the things that cause foreclosures are problems in the economy, the loss of jobs or lower paying jobs limits the ability to pay the mortgage,” Blomquist said. “This time around we are seeing that the economy is getting a bit worse.”

In some areas where there are a lot of foreclosures, such as Queens, prices for houses were increasing quickly and people were getting excited, causing them to overextend themselves financially to buy a home because they thought it would continue to go up in value. In addition, lenders were giving loans to people without requiring them to document their income. The loans also had a low teaser rate up front, but a couple years down the road they would reset to a higher rate.

“Over speculation and greed on everyone’s part allowed the housing market to basically get out of touch with reality and market fundamentals of supply and demand,” Blomquist said. “We expect the trend to increase toward the end of the year because there are problem loans that have not reset yet and people can not make payments.”

Eventually the market will correct itself, and has begun to already, but it is hard to predict. Sometimes at the end of next year or into 2010 we will see stable market conditions.

The primary step in preventing a foreclosure is to remain current with mortgage payments, homeowners insurance, and if the homeowners’ loan is about to adjust to a rate they think they will not be able to pay, they can contact their lender and request a modification of the loan to obtain a reduced interest rate. Another option would be to refinance if their credit and income allows them to do so, said Joseph Ardito, a real estate attorney for more than 14 years serving New York City and Long Island.

He said if a homeowner is served with court documents commencing a foreclosure preceding, they should not ignore it but rather contact an attorney to assist them in defending the foreclosure action as there are options available, especially if there is equity in the house.

A bill recently signed by Gov. David Paterson gives New Yorkers an extra 90 days to save their homes from foreclosure, on top of the 440-day foreclosure process, which is typical in New York.

“The point of realization of the house going to sale is when you have the depression and the stressful situation which can wreak havoc on a family,” Ardito said, adding that it is best to forecast the possibility of the situation and contact a credit council, an attorney, or a government agency for assistance.