Thursday, February 17, 2011

Colorado has 14th-smallest foreclosure inventory in US

[See here for more 4th Q 2010 delinquency survey analysis - "Colorado continues to improve faster than nation with decline in mortgage delinquencies"]

The percentage of Colorado mortgage loans in foreclosure fell to 2.53 percent during the fourth quarter of 2010, falling from 2009’s fourth-quarter rate of 2.81 percent. According to a report released today by the Mortgage Bankers Association, however, in spite of recent year-over-year declines in the foreclosure inventory, the proportion of Colorado mortgage loans in foreclosure rose this year from the third quarter to the fourth quarter, increasing from 2.4 percent to 2.53 percent.

The increase in foreclosure inventory from the third quarter to the fourth was also experienced nationally.

Compared to the proportion of loans in foreclosure for all states, Colorado’s totals are lower than national percentages. Nationally, 4.63 percent of loans nationwide were in a state of foreclose during the fourth quarter of 2010. Year-over-year trends are up nationally with 2010’s fourth-quarter percentage being an increase from the fourth quarter of 2009 when the total percentage of loans in foreclosure was 4.58. Nationally, foreclosing loans also rose from the third quarter to the fourth quarter of 2010 with an increase from 4.39 percent to 4.63 percent.

Only 13 states reported a smaller percentage of loans in foreclosure than Colorado. North Dakota reported the smallest percentage of foreclosing mortgages with 1.11 percent. Alaska placed slightly behind North Dakota with 1.13 percent of loans in foreclosure.

States reporting the highest percentages of loans in foreclosure included Nevada and Florida with percentages of 10.06 percent and 14.18 percent, respectively.

Short-term delinquencies dropped in both Colorado and nationally from the fourth quarter of last year to the fourth quarter this year. In Colorado, 30-day delinquencies fell from 2.64 percent to 2.44 percent, year over year, while nationwide, they fell from 3.63 percent to 3.49 percent during the same period.

Nationwide, the percentage of loans in foreclosure during the third 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. From the third quarter of last year to the third quarter of this year, the foreclosure inventory shrank faster in Colorado than nationally.

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 36th place.

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.