R.I. foreclosures drop 10% in 2013

HOUSINGWORKS RI reported Friday that foreclosures for single-family and multifamily homes dropped 10.2 percent in 2013 to 1,468 compared with 1,634 foreclosures the previous year. / COURTESY HOUSINGWORKS RI
HOUSINGWORKS RI reported Friday that foreclosures for single-family and multifamily homes dropped 10.2 percent in 2013 to 1,468 compared with 1,634 foreclosures the previous year. / COURTESY HOUSINGWORKS RI

PROVIDENCE – Rhode Island saw 1,468 foreclosures for single-family and multifamily homes in 2013, a 10.2 percent decline from 1,634 foreclosures the previous year, affordable homes coalition HousingWorks RI reported Friday.

The state average for the percentage of mortgaged stock attributable to foreclosures was 0.8 percent in 2013, down from 0.9 percent a year earlier.

Ten municipalities reported rates higher than the Rhode Island average, including Woonsocket (2.16 percent); Providence (1.99 percent) excluding the East Side; West Warwick and Pawtucket (each with 1.47 percent); Central Falls (1.07 percent); Burrillville, Johnston and Coventry (each with 1.05 percent); Warwick (0.93 percent) and North Providence (0.89 percent).

Overall, 22 Rhode Island cities and towns saw foreclosures decline last year, while 12 municipalities and Providence’s East Side saw foreclosures increase and five saw no change.

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New Shoreham, Little Compton and Jamestown each reported no foreclosures during 2013. Barrington (0.13 percent), Narragansett (0.21 percent) and South Kingstown (0.23 percent) had the lowest foreclosure rates in the state.

“Despite the overall decline in actual residential foreclosures, persistent unemployment and high housing cost burdens leave many homeowners still vulnerable to foreclosure,” stated the HousingWorks report. “Income loss due to unemployment leaves homeowners at a disadvantage when trying to cover their basic housing costs. Across Rhode Island, higher rates of unemployment correlate to higher housing cost burdens.”

Households are considered cost burdened when they spend more than 30 percent of their income on housing expenses. According to HousingWorks RI’s analysis of U.S. Census data, 28.1 percent of all Rhode Island homeowners with a mortgage were housing-cost burdened in 2000 compared with 38 percent in 2012.

“Until policy makers can address both our state’s unemployment rate and housing cost burdens, Rhode Island will continue to be vulnerable to the negative affects of residential foreclosures,” said Nicole Lagace, interim executive director of HousingWorks RI.

In the fourth quarter alone, 298 foreclosure deeds were filed for residential properties, a decline of 18.6 percent from 366 foreclosures in the fourth quarter of 2012.

Rhode Island ranks third in New England and eighth nationwide for percentage of loans more than 90 days delinquent, which in the fourth quarter of 2013 was 6.57 percent in the Ocean State compared with the national average of 5.41 percent. In Massachusetts, 5.65 percent of loans were seriously delinquent in the fourth quarter.

Rhode Island also had the highest rate of fourth-quarter foreclosure starts in New England at 0.78 percent, and tied for a rank at No. 4 nationwide for highest foreclosure start rate. The Massachusetts rate, 0.21 percent, was the lowest in the New England region for the three months ended in December. The national rate was 0.54 percent.

The HousingWorks RI quarterly report on foreclosures is funded through a grant from the R.I. Attorney General’s office as part of the National Mortgage Settlement, as well as support from Rhode Island Housing.

To view the complete report, visit www.housingworksri.org.

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