Friday, August 27, 2010

Colorado 34th in foreclosed loans

The percentage of Colorado mortgage loans in foreclosure rose slightly to 2.69 percent during the second quarter of 2010, rising from 2009’s second-quarter rate of 2.67 percent. According to a report released on August 26th by the Mortgage Bankers Association, the proportion of Colorado mortgage loans in foreclosure fell from the first quarter of 2010 to the second quarter of 2010, with the percentage of loans in foreclosure falling from 2.76 percent.

Compared to the proportion of loans in foreclosure for all states, Colorado’s totals are lower than national average. Nationally, 4.57 percent of loans nationwide were in a state of foreclose during the second quarter of 2010. Year-over-year trends are also upward nationally with 2010’s second-quarter percentage being an increase from the second quarter of 2010 when the total percentage of loans in foreclosure was 4.3 percent. Foreclosing loans decreased nationally from the first quarter of 2010 to the second quarter with an fall from the first quarter’s percentage of 4.63 percent.

Thirty-three states reported a smaller percentage than Colorado for the number of mortgage loans in foreclosure. North Dakota reported the smallest percentage of foreclosing mortgages with 1.02 percent. Alaska and Wyoming placed slightly behind North Dakota with 1.40 percent and 1.62 percent of loans in foreclosure, respectively.

States reporting the highest percentages of loans in foreclosure included Nevada and Florida with percentages of 10.33 percent and 14.04 percent, respectively.

Short-term delinquencies dropped slightly in both Colorado and nationwide from the second quarter of last year to the second quarter this year. In Colorado, 30-day delinquencies fell from 2.54 percent to 2.51 percent, year over year, while nationwide, they fell from 3.57 percent to 3.41 percent during the same period.

State of Colorado data has shown declines in new foreclosure filings since the third quarter of 2009, and both new foreclosure filings and completed foreclosures have declined in recent months.

Nationwide, the percentage of loans in foreclosure during the first quarter has outpaced Colorado since 2008. Prior to 2008, Colorado reported a larger percentage of foreclosing loans than was the case nationally, but since 2008, the percentage of foreclosing loans has grown more nationally than in Colorado each year.

Colorado has repeatedly fallen in state-by-state comparisons in recent years. In 2007, for example, Colorado was often found to be in the top 15 states for foreclosures. Colorado has since dropped to 34th.

This has also been the case in 30-day delinquencies and in the total combined percentage of loans that are in foreclosure or are 90-days delinquent.

Prior to 2008, Colorado experienced a large amount of foreclosure and delinquency activity before the rest of the nation making it one of the top states in the nation for foreclosures. Since 2008, other states like Nevada, California and Florida have outpaced Colorado and have moved national percentages above Colorado’s.