There are big housing problems in the smallest state in the nation.
At the end of 2010, nearly one in ten homeowners with mortgages were in foreclosure or were seriously delinquent on their loans. Rhode Island has one of the top ten foreclosure rates in the nation, and the highest rate in New England, according to a new report from Housing Works Rhode Island. Housing Works is a “coalition of nearly 140 organizations working to ensure that all Rhode Islanders have a quality, affordable home.”
The reasons for the rash of foreclosures are sadly familiar, but exacerbated due to the lack of land in the state. From the report:
“The severe undersupply of affordable homes in the Ocean State made Rhode Island susceptible to the current foreclosure crisis. Increased home prices, coupled with a decreased supply of affordable homes, reduced family incomes and increased lending, resulted in increasingly risky behavior on the part of mortgage lenders and borrowers, particularly in the subprime market.
Rhode Island’s home prices began to increase dramatically after the year 2000. Between the first quarter of 2000 and the first quarter of 2006 home prices increased at the steepest rate in the state’s history, with an average increase of almost 21% just in 2003—the highest in the united States that year. This rapid rise in home prices, up to twice the increase in other New England states, contributed to the severe shortage of homes that our working families could afford.”
Rhode Islanders have lost $5.6 billion in home equity over the past two years (The median price of a single family home has dipped from $283,500 in 2006 to $210,000 at the end of 2010). Two-thirds of local revenues in Rhode Island are generated from property taxes. The decline in home values is putting extreme pressure on local budgets. To the point where every school teacher in Providence received a notice that they could be laid off before the next school year. To make matters worse, the unemployment rate in Rhode Island was 10.9% at the end of 2010, which is down from a peak of 13.4% earlier in the year, and is also the highest in New England.
The report concludes that Rhode Island needs to “invest in strategies that will ensure a long-term supply of affordable homes” in order to eventually stabilize the housing market, attract businesses, and stay competitive.
If you live in Rhode Island, I am curious to know your take on the situation. Let me know in the comments section below.
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alviec
March 3, 2011 @ 10:14 am
Were they foreclosed lawfully? Was it the corret party?
Rhode Island law;
§ 34-11-1 Conveyances required to be in writing and recorded. – Every conveyance of lands, tenements or hereditament absolutely, by way of mortgage, or on condition, use or trust, for any term longer than one year, and all declarations of trusts concerning the conveyance, shall be void unless made in writing duly signed, acknowledged as hereinafter provided, delivered, and recorded in the records of land evidence in the town or city where the lands, tenements or hereditaments are situated; provided, however, that the conveyance, if delivered, as between the parties and their heirs, and as against those taking by gift or devise, or those having notice thereof, shall be valid and binding though not acknowledged or recorded. A lease for the term of one year or less shall be valid although made by parol. Leases for terms of more than one year may be recorded with a memorandum of lease in writing rather than the original lease; provided, however, that the memorandum shall contain the names of the parties to be charged, a description of the real estate, the duration of the lease, including renewal options and purchase options.
History of Section.
(G.L. 1896, ch. 202, § 2; G.L. 1909, ch. 253, § 2; G.L. 1923, ch. 297, § 2; G.L. 1938, ch. 435, § 1; G.L. 1956, § 34-11-1; P.L. 1979, ch. 231, § 1; P.L. 1981, ch. 380, § 1.)
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Property for Sale
June 10, 2011 @ 5:37 am
Great Info on foreclosure plague rhode island…
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