RI Foreclosures Up Nearly 20% in First Quarter of 2014

GoLocal News Team

RI Foreclosures Up Nearly 20% in First Quarter of 2014

Residential foreclosure deeds in Rhode Island were up 19.9% in Rhode Island for Q1 2014, compared to the first quarter of 2013, according to analysis released by HousingWorks RI on Friday. 

451 residential foreclosure deeds were filed in the state during the first quarter of 2014, while 376 were filed during the same time period last year.  Providence (without the East Side) and Woonsocket had the highest rate of foreclosures during the time period this year, followed by Pawtucket and West Warwick.

“It is troubling to see the uptick in residential foreclosure deeds filed statewide,” said Jessica Cigna, Research and Policy Director of HousingWorks RI. “We know that many mortgaged homeowners are still struggling with high housing cost burdens, and unfortunately, some programs previously available to help these homeowners are expiring.”

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RI Housing Environment

HousingWorks RI stated that HAMP (Home Affordable Modification Program), a federal program set up in 2009 to help homeowners modify their mortgage loan term is set to expire in 2014 for a number of homeowners, meaning those enrolled in the program will see an increase in their monthly mortgage costs.

A report released in January by the Office of the Special Inspector General for the Troubled Asset Relief Program showed that 90 percent of the 4,258 Rhode Island homeowners with active HAMP permanent modifications as of November 30, 2013, are scheduled to have mortgage interest rate and payment increases.

“We are definitely concerned about what this could mean for the 3,826 homeowners who are projected to have their loans modified,” Cigna said. “The median payment increase for Rhode Island homeowners with active HAMP permanent modifications is $192.”

Negative Equity in RI

Additionally, HousingWorks RI’s analysis shows 18.3 percent of Rhode Island homeowners have negative equity in their home, meaning that they owe more on their mortgages than the value of their home. This continues to rank Rhode Island highest in New England sixth in the nation for share of ‘underwater’ mortgages.

“We continue to see the lasting effects of these foreclosures on our housing market,” Cigna said. “Policymakers must recognize the importance of housing to our state’s economy and develop strategies that will ensure housing affordability over the long-term. This will reduce our state’s vulnerability to these losses in the future.”

The Quarterly Report on Foreclosures, which can be downloaded here, is made possible with a grant from the Rhode Island Attorney General’s Office as part of the National Mortgage Settlement, as well as support from HousingWorks RI..


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