New Yorkers holding on to homes: Foreclosure squeeze is loosening its grip

Foreclosure notices were filed on 1,541 city properties in May, an 18.3% decline from May 2009 and a 2.7% drop from April 2010, according to stats set to be released today by foreclosure listing firm RealtyTrac.

Default notices - the first step in the foreclosure process - fell considerably, down 29% to 1,141, compared with last year. They were off 5% compared with April2010.

While the citywide stats showed improvement, home finance woes rose in Brooklyn. The borough with the most foreclosure notices recorded 626 filings in May, a 5.2% jump compared with May 2009 and an 18.6% increase over April 2010.

Although Queens had the second-most foreclosure activity in the city, the number of troubled homes dropped significantly. There were 368 foreclosure filings in May, a 48.4% decline compared with last year and a 31.9% drop compared with the previous month.

One in every 2,174 homes in the city received a foreclosure notice in May, compared with a much more dire national rate of one in every 400 homes.