Colorado's foreclosure picture bleak, firms say

John Rebchook, Rocky Mountain News

Published September 14, 2006 at midnight

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Colorado continued to lead the U.S. in the foreclosure rate in August, with one national report showing that the number of foreclosures in the state spiked by 60 percent in one month, while another report shows a slight drop from July.

The differences between RealtyTrac, based in Irvine, Calif., and Boca Raton, Fla.-based Foreclosure.com can be explained by how they count foreclosures.

Foreclosure.com said its data only include properties in foreclosure that have been taken over by lenders, while RealtyTrac's data include homes that are in stages of pre-foreclosures.

RealtyTrac showed 6,079 homes in Colorado are in some stage of foreclosure, more than 150 percent higher than a year ago and about 60 percent higher than July.

Foreclosure.com showed 5,577 active foreclosures in Colorado, almost a 5 percent drop from July and about an 11 percent drop from August 2005.

Both reports agree that Colorado has the highest foreclosure rate in the nation, a dubious distinction it has held the entire year.

Greeley has the highest foreclosure rate of the 252 metropolitan areas surveyed by RealtyTrac, with one of every 136 households in foreclosure. Statewide, one of every 301 homes is in foreclosure, according to RealtyTrac.

Economist Tucker Hart Adams, who Tuesday said there will likely be a recession in Colorado next year, in large part because of problems in the housing market, said the reports back her pessimistic viewpoint.

"I hope I am wrong," Adams said."But I have never had this kind of reaction to one of my forecasts before. A lot of people are telling me that they are already seeing this in their industries."

Realtor Ed Jalowsky, owner of Classic Advantage -Realty, said he is seeing more expensive homes going into foreclosure.

By the numbers

•Realtytrac.com's Colorado statistics for August:

Number of foreclosures 6,079

Increase from July 60 percent

Increase from August 2005 153 percent

National foreclosure rate ranking No. 1

• Foreclosure.com's Colorado statistics for August:

Number of foreclosures 5,577

Decrease from July 5 percent

Decrease from August 2005 11 percent

National foreclosure rate ranking No. 1