CoreLogic: Foreclosure inventory rate rises slightly in October

RHODE ISLAND'S foreclosure inventory rate rose slightly over the year in October to 1.9 percent, CoreLogic said. / COURTESY CORELOGIC
RHODE ISLAND'S foreclosure inventory rate rose slightly over the year in October to 1.9 percent, CoreLogic said. / COURTESY CORELOGIC

PROVIDENCE – Rhode Island’s foreclosure inventory rate rose slightly over the year in October to 1.9 percent, but remained above the national rate of 1.2 percent, CoreLogic said Tuesday.
The foreclosure inventory rate rose one-tenth of a percentage point in the Ocean State, bucking the national trend of falling rates. The national rate declined three-tenths of a percentage point.
Still, the number of completed foreclosures fell in October in Rhode Island, to 1,156 from 1,664 in October 2014, a nearly 31 percent decline. Nationally, completed foreclosures fell 27.1 percent year over year, CoreLogic said.
Foreclosure inventory is the share of all homes at some stage of the foreclosure process, while completed foreclosures reflect the total number of homes lost to foreclosure.
Since the financial crisis began in September 2008, there have been approximately 6 million completed foreclosures across the country, and since homeownership rates peaked in the second quarter of 2004, there have been about 8 million homes lost to foreclosure, CoreLogic said.
“Improved economic conditions and more foreclosure completions have pushed the foreclosure rate lower,” Frank Nothaft, chief economist for CoreLogic, said in a statement.
Said Anand Nallathambi, president and CEO of CoreLogic, “We are heading into 2016 with the lowest foreclosure inventory in eight years thanks to escalating home values and progressive improvement in the U.S. economy. A large proportion of the remaining foreclosure inventory is clustered in New York, New Jersey and Florida. Equally encouraging is the drop in mortgage delinquency rates reflecting the stronger labor market and tighter underwriting since 2009.”

Four states and the District of Columbia had the highest foreclosure inventory rates in October 2015: New Jersey, 4.5 percent; New York, 3.6 percent; Hawaii, 2.5 percent; Florida, 2.5 percent; and the District of Columbia, 2.3 percent.
The five states with the lowest foreclosure inventory rate in October 2015 were Alaska, Arizona, Minnesota, North Dakota and Colorado, all of which had rates of 0.4 percent.

In addition, CoreLogic said the Ocean State’s serious mortgage delinquency rate – defined as mortgages that are 90 or more days past due – declined seven-tenths of a percentage point to 4.8 percent in October. Despite the decline, Rhode Island’s rate topped the national average of 3.4 percent.

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