Foreclosures rising statewide

John Rebchook

Wednesday, May 9, 2007

There were 9,254 foreclosures during the first quarter of 2007 according to a report released today by the Colorado Division of Housing. There were 28,453 foreclosures during all of 2006, indicating that Colorado may see an increase of 25percent in total foreclosures for 2007.

Foreclosure activity was most heavy on Colorado's Front Range, according to the report

Adams County topped the list with one foreclosure for every 98 households. Weld County was close behind with 1 in 124 households in foreclosure. Denver County reported 1 in 127, and Pueblo County and El Paso County reported foreclosure rates of 1 in 152 and 1 in 254 respectively.

In the mountains and the Western Slope, foreclosure rates are much lower with Mesa County and Summit County reporting a foreclosure rate of 1 in 505 and 1 in 680 respectively. La Plata County reported a foreclosure rate of 1 in 1,126.

If foreclosure filings keep on pace for the rest of the year, much of the state will experience an increase in foreclosure filings ranging from 20percent-30percent. Foreclosure filings in Colorado increased 31percent from 2005 to 2006 and 110percent between 2003 and 2006. Forecasts indicate that, barring major changes in economic conditions, foreclosure filings in Colorado could increase to approximately 36,000 for 2007, a 25percent increase from 2006.

Projections for the full year of 2007 further suggest that Adams and Arapahoe counties may experience increases of about 30 percent, with Denver county foreclosure activity looking to increase more than 35 percent. Weld, Larimer, El Paso, and Pueblo counties are likely to see increases of around 20 percent. Jefferson, Boulder, and Broomfield counties look to experience smaller increases, with foreclosure activity increasing 5-10percent. Douglas County may even see a drop in total foreclosures filed for 2007, perhaps by as much as 20 percent. Some mountain counties may experience declines in total foreclosures as well, such as Garfield, Routt, and Summit counties.

Seasonal variations in foreclosure filings are generally not large under most conditions. The first and fourth quarters usually experience the most foreclosure activity, with the second quarter having the least. Foreclosure rates tend to gradually build from the middle of the year through the end of the year.

"It's difficult to predict what will happen this year since we don't have a lot of past quarterly data from the individual counties," said Kathi Williams, Director of the Colorado Division of Housing. "But if foreclosures continue to be filed at current rates, we're looking at a significant increase from 2006 in many counties."

Zachary Urban, administrator of the Colorado Foreclosure Hotline, 1-877-601-HOPE, and director of housing counseling for Brothers Redevelopment Inc. notes that hotline activity continues to grow.

"The hotline has received over 14,000 calls since last October, and it often receives over 100 calls a day from homeowners trying to save their homes, " Urban said.

Many hope that the hotline is mitigating some of the foreclosure activity throughout the state. "Naturally, we're concerned that foreclosure numbers continue to increase," said Susan Kirkpatrick, Executive Director of the Colorado Department of Local Affairs. "Thanks to the Hotline and the counseling efforts of non-profits throughout Colorado, we know that thousands of people who've fallen behind on their payments have managed to avoid foreclosure. But, it's clear that the need for these services isn't about to go away."

The Colorado Division of Housing plans to continue counting foreclosure data from public trustees on a quarterly basis, and will be releasing data for the second quarter of 2007 later this year. The report can be accessed online at the Colorado Division of Housing Web Site at http://dola.colorado.gov/cdh/researchers/index.htm