New foreclosure auction sales were down 25 percent in Colorado during the
first quarter of 2012, compared to the first quarter of 2011. Following three
quarters of declines, auction sales rose slightly during the first quarter of
this year, but remained well below totals reported during the first quarter of
last year. According to a report released today by the Colorado Division of
Housing, there were 4,221 foreclosure auction sales, or completed foreclosures,
reported during the first quarter of 2012. There were 5,605 sales reported
during the same period of last year. Sales totals rose four percent from the
fourth quarter of last year to the first quarter of this year, rising from 4,057.
New foreclosure filings also fell during the first quarter. Foreclosure
filing totals for the first quarter of this year were down 3.7 percent, falling
to 7,783 from 2011’s first-quarter total of 8,079. From the fourth quarter of
last year to the first quarter of this year, foreclosure filings fell 8.9
percent.
Foreclosure auction sales during the first quarter fell 40
percent below the 2007’s peak of 7,117 auction sales reported during the third
quarter of that year. Auction sales totals are now near a five-year low. New
foreclosure filings during the first quarter fell 37 percent below 2009’s peak
of 12,468 reported during the third quarter of that year.
“Foreclosure activity continues to trend downward in Colorado, even when compared
to early 2011 which itself saw a big drop from 2010 totals,” said Ryan McMaken,
spokesman for the Colorado Division of Housing. “Toward the end of 2011, we saw
employment and home prices stabilize while home buying appeared to increase, so
these foreclosure numbers likely reflect those factors.”
While several regions of Colorado saw improvement during 2011, some areas
continued to experience growth in foreclosures.
Eleven of the state’s twelve metropolitan counties reported
year-over-year declines in the number of foreclosure auction sales occurring
during the first quarter. Sales declined 39 percent in Denver
and Douglas counties from the first quarter of last year to the first quarter
this year, while El Paso
County declined 24
percent during the same period. Only Broomfield
County reported an
increase, with auction sales rising 36 percent.
Those counties that did experience increases were generally
found outside the Front Range. From the first
quarter of 2011 to the first quarter of 2012, 16 of Colorado’s 64 counties reported increases in
foreclosure auction sales. Among those 16, 11 were mountain counties including
Garfield, San Miguel, Ouray and Eagle counties.
The five counties with the highest foreclosure rates during the
first quarter were San Juan, Eagle, Garfield, Las Animas, and
Park. Mesa County
was the only metro county among the counties with the top ten highest
foreclosure rates in the state. Boulder
County, on the other
hand, reported the lowest foreclosure rate of any metropolitan county and also
had one of the lowest foreclosure rates overall.
“Several mountain counties are still dealing with growth in
foreclosure activity, and may not have peaked yet,” McMaken said. “The Front Range, however, which drives the overall statewide
totals, looks like it peaked back in 2010.”
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.
