Regardless of the area of Rhode Island from Bristol to East Greenwich or Newport to Providence or Wakefield or anywhere in the smallest state in the country there has been a dramatic increase in the number of foreclosure homes in The Ocean State. This increase in defaulting mortgages has been caused in large part by the mortgage meltdown and the global financial collapse that followed it.
In addition to the financial situation worldwide, Rhode Island also has had the highest tax rate burden placed on its citizens of any New England state. This punitive tax structure has been blamed by many for the stifling the growth of businesses in the state, hindering some companies from locating in the state and even leading to companies that might have headquartered there from choosing Rhode Island for their principle headquarters.
The financial situation has gotten so bad in Rhode Island that one city, Central Falls, is poised to completely collapse if it is not incorporated into neighboring Pawtucket. This financial debacle has been brewing for decades of high taxation combined with generous social programs and foretells of the state of financial ruin which threatens the Rhode Island if not corrected.
Some issues that Rhode Island faces are not exclusive as other states have felt the brunt of the foreclosure crisis. Rhode Island is however, more affected than most states in this statistic due to its relatively small economy which is anchored on only three main industries. Health services, tourism and a dwindling manufacturing base make up the majority of Rhode Island's 33 billion dollar gross state product. Many companies in the United States such as Microsoft produce twice annual revenue as Rhode Island's entire gross state product which puts the size of the states into more perspective.
Wealthiest counties in Rhode Island are Newport County, Bristol County, Washington County, Kent County and Providence County. These Counties will produce the best possibilities for real estate investors and should be focused on by anyone looking to buy a foreclosure home. Other less affluent areas of the state also provide opportunities however the stronger the local economy the greater the opportunity of creating profitable situations to purchase a foreclosure home.