Foreclosures down 25 percent in Colorado in 2011 - Source Denver Post

Foreclosures down 25 percent in Colorado in 2011

(Associated Press file photo)

New foreclosure filings were down 25 percent in Colorado during 2011, dropping to the lowest annual total reported since 2006, according to the Colorado Division of Housing.

There were 31,914 new foreclosure filings in Colorado during 2011, compared to 42,746 filed during 2010.

According to the report released today, foreclosure sales at auction, the event that completes the foreclosure process, were also down during 2011, falling to the lowest level recorded since 2006. Auction sales fell 17 percent from 23,854 in 2010 to 19,622 during 2011.

"Foreclosures really slowed down during 2011, but not all of that was due to improvements in the real estate markets," said Ryan McMaken, spokesman for the Colorado Division of Housing. "Many lenders slowed down the processing of foreclosures during the first half of 2011 to deal with legal issues.

"Nevertheless, we do know that mortgage delinquencies are down and the home prices are stabilizing, so that also helped to push down foreclosure totals," said McMaken.

While several regions of Colorado saw improvement during 2011, some areas continued to experience growth in foreclosures.

All 12 of the state's metropolitan counties reported drops in both foreclosure filings and auction sales during 2011.

From 2010 to 2011, Adams County filings fell 27 percent and Denver County filings fell 32 percent. Foreclosure filings in Mesa County fell 28 percent during the same period.

Most of the state's 64 counties reported year-over-year declines in foreclosure filings.

Those counties that did experience increases were generally found on the Western Slope and outside the Front Range.

From 2010 to 2011, only 12 of Colorado's 64 counties report increases in foreclosure filings. Among those 12, 10 were mountain counties including Garfield, Routt, San Miguel, Gilpin, and Lake counties.

Although foreclosure filings have fallen for the past two years, foreclosure activity remains at unusually high levels, said McMaken.

"Foreclosure sales at auction have basically been flat for the past five years and totals are still twice what we'd consider to be normal," said McMaken. "We expect more progress to be made in 2012, although the task of dealing with the existing inventory of properties in foreclosure is likely to extend beyond this year."

Foreclosure filing totals for the fourth quarter of this year were down 20.5 percent, falling to 8,540 this year from 2010's fourth-quarter total of 10,737. Foreclosure sales at auction fell 13. 5 percent to 4,057 from 2010's fourth-quarter total of 4,691.

Foreclosure filings fell for the second year in a row during 2011, falling 31 percent below 2009's peak of 46,394.

Foreclosure sales at auction fell from 2010 to 2011, following an increase in sales from 2009 to 2010.

Forclosure sales at auction peaked at 25,054 during 2007. Auction sales totals fell 21 percent below peak levels during 2011.

Forcelosure sales are opened foreclosures that have proceeded through the full foreclosure process to final sale at public auction. Filings denote the beginning of the foreclosure process, and once a foreclosure is filed, the borrower has at least 110-120 days to work with the lender to avoid a completed foreclosure. It is during this period that borrowers work with lenders and housing counselors to work out loan modifications, short sales, or other ways of withdrawing the foreclosure.

Please feel free to comment to any of the posts on this blog. The intent is to start discussions on the subject content. If you have articles for post or comments about the blog in general please contact: Thank you Preferred Logistics----------- www.preferredlogistics.biz