Friday, May 31, 2013

Corelogic: Colorado posts fifth-lowest foreclosure inventory among states

According to Corelogic's national foreclosure report, released earlier this week, Colorado's foreclosure inventory rate  was 0.9 percent, which makes it tied for fifth-lowest foreclosure inventory rate among the fifty states. The highest rate was found in Florida where it was 9.5 percent. The lowest was in Wyoming where it was 0.5 percent. 

Also according to the report, Colorado's foreclosure rate, based on the number of completed foreclosures, was 58 mortgages per completed foreclosures. In a measurement like this, the higher the number, the "better" the foreclosure rate. (This was for the 12-month period ending April 2013.) 

Colorado's rate of 57, made it somewhat similar to Texas, where the rate was 54, and to Minnesota, where the rate was 61. 

Using this metric, Colorado had the 16th-highest foreclosure rate in the nation.  In other words, over the past year, looking at the number of completed foreclosures, Colorado was in the top one-third of states for newly completed foreclosures. 

So, we see a bit of a difference in Colorado when looking at foreclosure inventory or at new foreclosure transactions. When it comes to foreclosure inventory, Colorado is near the bottom, but if we look at new foreclosures completed, the state is in the top third.  

If we compare this Corelogic report to the MBA's first quarter 2013 report, we see that in the MBA report, Colorado has the seventh-lowest foreclosure inventory rate, which is similar to the Corelogic report. 

As noted in our earlier article on the delinquency report, Colorado had the ninth-lowest rate for 90-day delinquencies. So, Colorado is also near the bottom in the number of seriously-delinquent loans. 

Although completed foreclosures continue at a significant pace in the state, according to our statewide report, the number is nevertheless way down from peak years and 2012, dropping 30 percent, year over year, during the first quarter.  

Also released this week was the first quarter Realtytrac report. In the RT report, they reported a smaller decline in foreclosure activity than what we see in the Colorado state report. For example,  according to our first quarter numbers, the YOY change in Colorado for the first quarter was 30 percent down in completed foreclosures and 41 percent down in filings. But Realtytrac's numbers from this week show a smaller decline of 24.4 percent in completed foreclosures. The reasons for the difference remain unclear, as Realtytrac's methods are not made public.