Thursday, November 14, 2013

Colorado foreclosure filings drop to 2004 levels

Read the report here. 

New foreclosure filings were down 46.1 percent in Colorado during the first nine months of 2013, compared to the first nine months of 2012. According to a report released today by the Colorado Division of Housing, there were 12,341 foreclosure filings reported from January through September of 2013, compared to 22,894 during the same period of last year.

Foreclosure auction sales, or completed foreclosures, also fell significantly over the same period, dropping 36.9 percent from 2012’s January-September total of 12,143 to this year’s total of 7,667 for the same period. 


Both foreclosure filings and foreclosure auction sales during the third quarter of 2013 were at the lowest quarterly totals collected in any quarter since the Division of Housing began tracking quarterly totals in 2007.


“This foreclosure cycle has largely wound down,” said Ryan McMaken, economist for the Colorado Division of Housing. “We’re looking at a nine- or ten-year low in foreclosure totals for the year.”


All of the state’s twelve metropolitan counties reported year-over-year declines in both foreclosure filings totals and foreclosure auction sales totals for the first nine months of 2013, when compared to the same period of last year.  The counties with the largest declines in foreclosure filings were Douglas County and Broomfield County with drops of 53.4  percent and 51.4 percent, respectively.


Only three of the state’s 64 counties reported year-over-year increases in foreclosure filings so far this year, and they were smaller counties with fewer than 50 total foreclosure filings in each county.


When adjusted for population size, the counties with the highest foreclosure rates were all found outside the metropolitan areas. The top five counties for the proportion of homes that were in foreclosure during the third quarter were Grand, Sedgwick, Saguache, Lincoln, and San Juan counties.

“40 percent drops in foreclosure filings were typical all along the Front Range this past quarter,” McMaken said. “And the declines in foreclosures have been seen in every region of the state this year.”


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.