Fewer new foreclosures filed in 2010, but more foreclosures going to auction
Click here for full report.
New foreclosure filings fell to 10,736 in Colorado during 2010’s fourth quarter, falling 4.8 percent from 2009’s fourth-quarter total of 11,282. According to a report released Thursday by the Colorado Division of Housing, foreclosure sales at auction, the event that completes the foreclosure process, also dropped during the fourth quarter, falling from 5,466 to 4,691 year-over-year for the fourth quarter.
2010 year-end totals for new foreclosure filings also fell, with filings falling 8.0 percent. There were 46,394 filings in 2009 and 42,692 filings in 2010. Year-end totals for foreclosure sales at auction, on the other hand, increased 16.9 percent from 20,437 during 2009 to 23,891 during 2010.
2010’s filings total is the second-largest ever recorded, coming in behind 2009’s record total of 46,394. Foreclosure filings surged in 2009 in response to recession-driven layoffs in late 2008 and early 2009.
Foreclosure sales at auction, however, peaked during 2007 at 25,054 sales. Sales totals then fell in 2008 and 2009, but surged again in 2010.
Although 2010 foreclosure totals were at near record highs, the report also noted that new foreclosure filings have been largely declining over the past eighteen months. According to the report, “[r]ecently-collected quarterly and monthly totals indicate that foreclosure filings continue to fall from peak levels, and 2010’s fourth-quarter total for foreclosure filings remains 14 percent below 2009’s third-quarter peak.”
While some regions of Colorado saw some improvement in 2010, some areas continued to experience continued growth in foreclosures. All Front Range metropolitan counties reported drops in foreclosure filings in 2010. From 2009 to 2010, Adams County filings fell 13.4 percent while Denver County filings fell 17.7 percent. Foreclosure filings in Pueblo County fell 11.9 percent during the same period. In Mesa County, the most populous county on the Western Slope, foreclosure filings increased 29.6 percent from 2009 to 2010, while filings in Garfield County and La Plata County increased 64 percent and 9.3 percent, respectively.
At the same time, all Front Range metropolitan counties except Denver County reported year-over-year increases in foreclosure sales at auction. Comparing 2009 to 2010, sales rose 4.3 percent and 13.1 percent in Adams County and Arapahoe County, respectively, and fell 7.3 percent in Denver County. During the same period, sales rose 173.0 percent in Mesa County and rose 36 percent in La Plata County.
Foreclosure 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.
The full report is available on the Division of Housing blog: http://divisionofhousing.blogspot.com/
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