Thursday, October 8, 2009

Completed foreclosures fall 5 percent in September

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Completed foreclosures fall 5 percent in September

Foreclosure sales at auction in Colorado’s largest counties fell 5 percent last month as compared to September of last year. According to a report released today by the Department of Local Affairs – Division of Housing, completed foreclosures were down compared to the same period last year, but rose 21 percent from August to September of this year.

New foreclosure filings, which open the foreclosure process, increased 72 percent year-over-year. But, the Division’s report downplays the increase in filings as being partially driven by a statutory change that depressed the number of new filings during August and September of last year. According to the report, “the large difference in foreclosure filing totals between September 2008 and September 2009 is driven partially by statutory changes and only partially by actual conditions in the real estate markets.”

New foreclosure filings fell 0.5 percent from August to September of this year.

Mesa County reported the largest year-over-year increase in completed foreclosures, with a rise of 217 percent. Increases in other counties were much smaller with Adams County reporting an increase of 3.4 percent. Denver County reported the largest fall in totals of completed foreclosures with a drop of 29 percent, while Arapahoe County totals fell 13 percent.

From August to September, all counties surveyed except El Paso County reported increases. El Paso County’s total of completed foreclosures fell 1 percent while Mesa County rose 49 percent, Adams County rose 34 percent, and Denver County rose 17 percent.

Foreclosure rates in metropolitan counties vary considerably. Adams County reported the largest foreclosure rate with 540 households per foreclosure completed in September. Weld County reported a rate of 563 households per foreclosure, and Denver reported a rate of 876.The counties with the lowest foreclosure rates were Boulder, Mesa, and Larimer counties with rates of 2,360, 1,459 and 1,378 households per foreclosure completed in September, respectively.

For all counties surveyed, the overall foreclosure rate was 966 households per completed foreclosure.

The Division of Housing’s monthly foreclosure report surveys foreclosure activity in the twelve largest counties of Colorado. The report is a supplement to the Division’s quarterly foreclosure report that includes all counties in Colorado.