State foreclosure experts doubt RealtyTrac figures
California firm places Colorado No. 2 in nation
John Rebchook, Rocky Mountain News
Thursday, April 19, 2007
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A national report released Wednesday that claims Colorado's foreclosure rate is the second-highest in the nation was met with widespread skepticism by local experts.
RealtyTrac, based in Irvine, Calif., said only Nevada has a higher foreclosure rate than Colorado. In Colorado, the company said 6,267 foreclosures were filed in March, which equates to one out of every 292 homes in foreclosure.
That is close to "what it should be for the entire first quarter, not one month," said Zach Urban of the nonprofit Brothers Redevelopment. Urban also heads the Colorado Foreclosure Hotline.
Last week, the Rocky Mountain News reported that more than 6,200 foreclosures had been filed in the seven-county Denver area in the first three months of 2007, a 30 percent increase over last year's record pace. The Rocky relied on reports from county trustees.
"And it's not like there is some huge pocket of foreclosures in Gunnison, driving up the number for the entire state," Urban said. "To say we're No. 1 or No. 2 month after month, is just criminal."
He said the Mortgage Bankers Association reported that Colorado ranks No. 12 in the nation for mortgage delinquencies.
Colorado Division of Housing is completing its own survey of public trustees outside of the Denver area, and its results are much different than RealtyTrac's.
The division has surveyed 32 of the largest counties outside the Denver area and found about 2,400 foreclosures filed in the first quarter; about 8,800 for the state.
"RealtyTrac is counting every foreclosure three times," said Kathi Williams, head of the housing division.
Rick Sharga, vice president of marketing at RealtyTrac, said it is "pointless to debate whose methodology and numbers are right. They're all right, based on what you are counting."
He said he is looking at an alternative way to count Colorado foreclosures that would address the division's concerns, though it's too early to say if that will be possible.
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