R.I. foreclosures likely to take years to unload
Posted on June 23rd, 2011
JACKSONVILLE, FLA. — Rhode Island had the 10th-highest percentage of homes either in foreclosure or more than 30 days behind on mortgage payments in April, according to LPS Applied Analytics.
Given the current pace of foreclosure sales in the state, it would take 63 months — more than five years — to sell every housing unit in Rhode Island currently in foreclosure or more than 90 days delinquent.
Lenders in April filed for foreclosure on Rhode Island homes that had fallen an average of 334 days behind on mortgage payments. Foreclosed homes sold in April had been delinquent an average of 664 days.
In April, 253 foreclosed homes were sold, while 6,960 remained in the foreclosure process. Of those, 4,632 were located in Providence County.
A combined 13.2 percent of Rhode Island housing units were either foreclosed or in a state of delinquency in April, compared to 12.11 percent nationwide.
The U.S. foreclosure rate was 4.14 percent in April, while Rhode Island’s was 4.6 percent. And 8.6 percent of Rhode Island homes were delinquent on mortgage payments, compared to 7.97 percent nationally.
The national foreclosure rate increased in the last year, while the delinquency rate fell, indicating a likely decline in foreclosures in the future.
The report also noted a decline in “new problem loans” — loans that were current six months ago and have since fallen more than 90 days behind in payments — from 1.86 percent last November to 1.28 percent in April. In Rhode Island, 1.35 percent of loans were new problem loans in April.
But the report revealed a backlog in filing foreclosure cases. In January 2008, foreclosed homes had been delinquent for an average of 251 days nationally. In April, that number had increased to 567 for the United States and 545 for Rhode Island.
To help mitigate foreclosures, Rhode Island will receive $547,000 from congressionally chartered nonprofit NeighborWorks America to pay for centers and organizations that counsel citizens facing foreclosure, the state’s congressional delegation and Rhode Island Housing announced last week.
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