Mortgage delinquency in R.I. declines in July

THE MORTGAGE DELINQUENCY rate in Rhode Island in July was 4%, a decline from 6.1% one year prior. / AP FILE PHOTO/DAVID ZULUBOWSKI

PROVIDENCE – The 30-day-or-more mortgage delinquency rate in Rhode Island was 4% in July, a decline from 4.2% in June and 6.1% one year prior, according to data released by CoreLogic on Tuesday.

The national delinquency rate was 4.2% in July. Rhode Island had the second-highest mortgage delinquency rate in New England in July, but delinquency rates had declined in all six states in the region, matching a national trend.

“Declining delinquency levels are an encouraging sign of economic improvement and the durability of the housing market,” said Frank Martell, CEO and president of CoreLogic. “Looking ahead to the end of many forbearance and other assistance programs, many borrowers receiving support must consider their financial options, including a potential loan modification, to ensure they stay current and keep foreclosures at bay.”

New England mortgage delinquency rate in July:

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  • Connecticut: 5.3%, a decline from 8.3% one year prior
  • Maine: 3.9%, a decline from 6.1% one year prior
  • Massachusetts: 3.6%, a decline from 5.5% one year prior
  • New Hampshire: 3.1%, a decline from 4.7% one year prior
  • Vermont: 3.2%, a decline from 5.3% one year prior.

The share of Rhode Island mortgages in serious delinquency, or 90 past due or more, was 2.6%, lower than the national rate of 2.8% and a decline from 3.8% one year prior.

The share of mortgages homes in foreclosure totaled 0.3% in the Ocean State in July, a tick down from 0.4% one year prior and higher than the national rate of 0.2%.

“Even if loan modification or income recovery is unable to help delinquent homeowners become and remain current on their payments, the double-digit rise in home prices may help them avoid a distressed sale,” said Frank Nothaft, chief economist at CoreLogic. “Homeowners with substantial home equity are far less likely to experience a foreclosure sale, and fortunately, the CoreLogic Home Equity Report found the average owner gained $51,500 in equity in the past year — a five-fold annual increase.”

The full report may be viewed online.

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