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R.I. Home Foreclosure Notices Rise Sharply

Home foreclosure notices rose sharply in the first quarter as payments on adjustable mortgages rose and falling house prices kept owners from selling or refinancing, the Providence Journal reported recently.

About 1,060 houses were advertised for foreclosure auction during January, February and March, up 282 % compared with the same period last year, according to data from Rhode Island Housing, the Journal reported. The state agency tracks legally noticed foreclosures. Not all properties advertised for foreclosure auction are sold by the lender.

RealtyTrac data show that Rhode Island had 1,581 foreclosure notices, or 1 for every 284 households — more than the 1,061 foreclosure initiations reported by Rhode Island Housing. The foreclosure rate was 1 in 166 in Massachusetts, according to RealtyTrac.

Of the nearly 3,000 properties in Rhode Island advertised for foreclosure during the 12-month period that ended March 31, 79 % were in the cities and inner suburbs: Providence, Cranston, Johnston, East Providence and Warwick, according to Rhode Island Housing’s data. Providence, with 1,543 foreclosure initiations, accounted for 52 % of the total.

Suburban and rural areas, however, are also experiencing more foreclosures. In Burrillville, for example, 79 properties were advertised for foreclosure auction during the recent 12-month period, the data show. In Coventry, there were 56. Even the most affluent communities were not immune. Barrington recorded 16 foreclosure initiations during the period and there were 8 in East Greenwich, according to Rhode Island Housing data.

Nationally, almost 650,000 properties were in some stage of foreclosure during the first quarter, or 1 in every 194 households, according to RealtyTrac.

In 2007, Rhode Island ranked 31st in foreclosures in the U.S. in terms of the percentage of households with a foreclosure. In Rhode Island, 0.41% of households were dealing with foreclosure. In comparison, the number one rated state, Nevada, had 3.37% of households affected.

There was a total of 1,838 home foreclosures in Rhode Island last year. Nevada had 66,316. The top five in order were: Nevada, Florida, Michigan, California and Colorado.

Connecticut was ranked 16th in 2007, with 11,860 homes in foreclosure, which represented 0.83% of households. Massachusetts was 19th, with 17,737 home foreclosures representing 0.66% of households.

Government attempts to slow the flood of defaults “could be simply deferring another flood of foreclosures,” James Saccacio, chief executive officer of Irvine, Calif.-based RealtyTrac Inc., a seller of foreclosure data, according to The Providence Journal. “That could extend the length of time it takes the market to recover from this downward cycle.”

“What would normally alleviate the foreclosure situation in a normal market is people starting to buy properties again,” said Rick Sharga, RealtyTrac’s vice president of marketing.

However, the unavailability of loans for people without perfect credit and a significant down payment is slowing the process, he said.

“It’s a cycle that’s going to be difficult to break, and we’re certainly not at the breaking point just yet,” Sharga added.




	Headline News R.I. Home Foreclosure Notices Rise Sharply Home foreclosure notices rose sharply in the first quarter as payments on adjustable mortgages rose and falling house prices kept owners from selling or refinancing, the Providence Journal reported recently. About 1,060 houses were advertised for foreclosure auction during January, February and March, up 282 % compared with the same period last year, according to data from Rhode Island Housing, the Journal reported. The state agency tracks legally noticed foreclosures. Not all properties advertised for foreclosure auction are sold by the lender. RealtyTrac data show that Rhode Island had 1,581 foreclosure notices, or 1 for every 284 households — more than the 1,061 foreclosure initiations reported by Rhode Island Housing. The foreclosure rate was 1 in 166 in Massachusetts, according to RealtyTrac. Of the nearly 3,000 properties in Rhode Island advertised for foreclosure during the 12-month period that ended March 31, 79 % were in the cities and inner suburbs: Providence, Cranston, Johnston, East Providence and Warwick, according to Rhode Island Housing’s data. Providence, with 1,543 foreclosure initiations, accounted for 52 % of the total. Suburban and rural areas, however, are also experiencing more foreclosures. In Burrillville, for example, 79 properties were advertised for foreclosure auction during the recent 12-month period, the data show. In Coventry, there were 56. Even the most affluent communities were not immune. Barrington recorded 16 foreclosure initiations during the period and there were 8 in East Greenwich, according to Rhode Island Housing data. Nationally, almost 650,000 properties were in some stage of foreclosure during the first quarter, or 1 in every 194 households, according to RealtyTrac. In 2007, Rhode Island ranked 31st in foreclosures in the U.S. in terms of the percentage of households with a foreclosure. In Rhode Island, 0.41% of households were dealing with foreclosure. In comparison, the number one rated state, Nevada, had 3.37% of households affected. There was a total of 1,838 home foreclosures in Rhode Island last year. Nevada had 66,316. The top five in order were: Nevada, Florida, Michigan, California and Colorado. Connecticut was ranked 16th in 2007, with 11,860 homes in foreclosure, which represented 0.83% of households. Massachusetts was 19th, with 17,737 home foreclosures representing 0.66% of households. Government attempts to slow the flood of defaults “could be simply deferring another flood of foreclosures,” James Saccacio, chief executive officer of Irvine, Calif.-based RealtyTrac Inc., a seller of foreclosure data, according to The Providence Journal. “That could extend the length of time it takes the market to recover from this downward cycle.” “What would normally alleviate the foreclosure situation in a normal market is people starting to buy properties again,” said Rick Sharga, RealtyTrac’s vice president of marketing. However, the unavailability of loans for people without perfect credit and a significant down payment is slowing the process, he said. “It’s a cycle that’s going to be difficult to break, and we’re certainly not at the breaking point just yet,” Sharga added.