Report: Bank Owned Homes Foreclosures, Evictions Rose in R.I.

by on States

The number of bank owned homes foreclosures and evictions in Rhode Island is on the rise. This is the conclusion made on the report “Move Out Rhode Island-An Analysis of 2008 Foreclosure Evictions” released by the Rhode Island Legal Services.

Many families in Rhode Island were forced out of their homes because of foreclosures. They were left with no choice but to rent a home. However, after several months, they are facing another prospect of eviction because the property they are renting is also a bank foreclosure.

According to the report, banks and lenders filed eviction actions against 2,338 renters after they foreclosed on various properties in 2008. The report highlighted the extent of foreclosure-related evictions.

The report used the average household size for each town and city in the state’s 2000 Census to come up with the 2,338 total evictions filed by lenders and banks in 2008. Meanwhile, around 5,887 families were evicted in Rhode Island by foreclosing banks and lenders last year.

In Providence, about 50 percent of foreclosure-related evictions or 1,116 were filed by financial institution. Additionally, 33 percent of foreclosure-related evictions or 774 were reported in Warwick, Central Falls, Pawtucket, Woonsocket and Cranston.

On the other hand, over 68 percent of foreclosure-related evictions were made on bank owned homes foreclosures situated in areas where the minorities accounted for almost 20 percent of the population. Data from the 2000 Census showed that Latino families accounted for 31 percent of the total evictions done in 2008 by foreclosing banks and lenders.

Data from the American Community Survey showed that Latinos accounted for 11.2 percent of the total population in Rhode Island.

Bank owned homes foreclosures activity in Rhode Island in the first quarter of this year rose by 8 percent compared with figures for the same period last year. Filings for foreclosures were made on 1,711 properties in the first three months of 2009, representing a 24 percent decline from the last quarter of 2008 but 8 percent above the first quarter lever last year.

Members of the Rhode Island Bank and Tenant and Homeowner Association said that the report emphasized the need for a law to protect the rights of renters in the state. They called on legislators in Rhode Island to address the problem immediately and pass a law to protect tenants affected by bank owned homes foreclosures.

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