New York state foreclosures may top 50,000 in 2008

NEW YORK, Nov 20 (Reuters) - Home foreclosures in New York State could top 50,000 in 2008, and the declining value of homes could cause local property taxes to fall by as much as $1.3 billion, according to a report released on Thursday.

Property taxes, collected by counties, cities and towns, are the bedrock of their revenues, and sinking home values could worsen financial problems of local governments.

Democratic State Comptroller Thomas DiNapoli said in the report that property tax collections could plunge as much as $1.3 billion if the current economic downturn mirrors the recession of the early 1990s,

"While New York State is less affected by the housing crisis than other states overall, there are some regions where foreclosures have increased by more than 500 percent since 2006," he added.

Some of the areas with the highest foreclosure rates in the third quarter were the New York City borough of Staten Island and Orange County, home of West Point, the U.S. Military Academy, the report said.

New York ranks only 36th among U.S. states on foreclosures, the report said. (Reporting by Joan Gralla; Editing by Leslie Adler)