R.I. foreclosure rate falls in June, still higher than nat’l average

RHODE ISLAND'S FORECLOSURE inventory rate dropped to 1.4 percent in June, a 0.5 percent decline from a year earlier, according to CoreLogic. / COURTESY CORELOGIC
RHODE ISLAND'S FORECLOSURE inventory rate dropped to 1.4 percent in June, a 0.5 percent decline from a year earlier, according to CoreLogic. / COURTESY CORELOGIC

PROVIDENCE – Both Rhode Island’s foreclosure inventory rate and serious delinquency rate exceeded national rates in June, according to data released this week by CoreLogic.
Rhode Island’s foreclosure inventory rate was 1.4 percent, slightly above the national rate of 1.2 percent, which was the lowest since December 2007. There was a greater difference in the serious delinquency rate – defined as mortgages that are 90 days or more past due – as Rhode Island’s rate was 4.9 percent and the national rate was 3.5 percent.
Still, rates are declining, both in Rhode Island and nationally.
Year over year, Rhode Island’s foreclosure inventory rate dropped a half a percentage point. For the 12 months ending in June, there were 1,586 completed foreclosures, a drop from 1,659 during the year-ago period. The serious delinquency rate also dropped year over year by 0.9 percentage points.
Nationally, CoreLogic said that the foreclosure inventory declined by 28.9 percent and completed foreclosures dropped by 14.8 percent since June 2014. Foreclosures nationwide decreased to 43,000 in June compared with 50,000 in June 2014. In September 2010, foreclosures peaked nationally at 117,119, CoreLogic said.

CoreLogic said the number of mortgages in serious delinquency is also trending downward, as there was a 23 percent decline year over year in June to 1.3 million mortgages in this category.
“The foreclosure rate for the U.S. has dropped to its lowest level since 2007, supported by a continuing decline in loans made before 2009, gains in employment and higher housing prices,” Frank Nothaft, chief economist for CoreLogic, said in a statement. “The decline has not been uniform geographically, as the foreclosure rate varies across metropolitan areas. In the Denver and San Francisco areas, the foreclosure rate has fallen to 0.3 percent, whereas in the Tampa market the rate is 3.5 percent and in Nassau and Suffolk counties it is an elevated 4.8 percent.”
Said Anand Nallathambi, president and CEO of CoreLogic, “Serious delinquency is at the lowest level in seven and a half years reflecting the benefits of slow but steady improvements in the economy and rising home prices. We are also seeing the positive impact of more stringent underwriting criteria for loans originated since 2009 which has helped to lower the national seriously delinquent rate.”

Five states with the highest number of completed foreclosures for the 12 months ending in June 2015 were: Florida (102,000), Michigan (46,000), Texas (33,000), California (29,000) and Ohio (27,000).
Four states and the District of Columbia had the lowest number of completed foreclosures for the 12 months ending in June: South Dakota (32), the District of Columbia (107), North Dakota (313), Wyoming (499) and West Virginia (566).
Four states and the District of Columbia had the highest foreclosure inventory as a percentage of all mortgaged homes: New Jersey (4.7 percent), New York (3.7 percent), Florida (2.7 percent), Hawaii (2.5 percent) and the District of Columbia (2.4 percent).
The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Alaska (0.3 percent), Minnesota (0.4 percent), Montana (0.4 percent) Nebraska (0.4 percent) and North Dakota (0.4 percent).

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