Housing woes continue despite 12% decrease in foreclosures throughout city

Fewer New Yorkers were hit with foreclosure notices last month compared with July, but the city's housing woes are far from over.

The number of city homeowners in some stage of the foreclosure process totaled 2,223 in August - down nearly 12% from July, but up about 3% compared with August 2008, according to stats due out today from foreclosure listing firm RealtyTrac.

Michael Hickey, executive director of the Center for New York City Neighborhoods, a nonprofit that coordinates foreclosure prevention efforts, said the latest numbers do not reflect the growing group of New Yorkers at risk of losing their homes.

"We look at broader trends and those continue to be negative," Hickey said. "We expect an ongoing increase in foreclosure activity primarily because of job losses and ongoing challenges in the financial, real estate and insurance sectors."

"Things are not getting worse, but I don't think they are getting better," added Daren Blomquist of RealtyTrac. "We still have rising unemployment, problem loans outstanding and price declines that are putting more homes under water," meaning they're worth less than the purchase price.

Once again, Queens was the city's top borough for foreclosures, with 935 homeowners receiving a notice of either a letter of default, a scheduled auction or bank repossession. The numbers were a bit better than July and than August 2008.

Brooklyn had the second most foreclosure filings at 693, down more than 3% from July, but up about 10% compared with August 2008.

Citywide, Staten Island had the highest foreclosure rate, with one in every 690 homes there in some stage of foreclosure. But the total, 258, was down more than 3% from July and nearly 13% from August 2008.

While many city homeowners are on shaky ground, New York remains far more stable than the country overall. One in every 357 American homeowners received a foreclosure filing in August, compared with one in every 1,496 in New York City.

Nevada continued to endure the nation's highest state foreclosure rate - with one in every 62 homeowners in trouble.

Florida was the second worst, with one in every 140 homeowners imperiled. California was third worst, followed by Arizona, Michigan, Idaho, Utah, Colorado, Georgia and Illinois.

pfurman@nydailynews.com