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Foreclosure flood increases

9-month '07 total nearly equal to all of '06 in metro

John Rebchook, Rocky Mountain News

Published October 2, 2007 at midnight

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More than 19,000 foreclosures have been filed in the seven-county Denver area in the first nine months of the year, only about 300 shy of the record set for all of 2006.

There were 19,120 foreclosures in the first three quarters of the year, marking a 37 percent jump from the 14,001 filed through September of last year, county public trustee offices said Monday. A record 19,425 foreclosures were filed in 2006.

"That is very painful," said Zachary Urban of Brothers Redevelopment, a nonprofit group that administers the Colorado Foreclosure Hotline (1-877-601 HOPE). The hotline has received almost 22,000 calls since it was launched Oct. 12, 2006.

"I hope people understand these are just not statistics or numbers on a page," Urban added. "If you look at the neighborhood consequences, the 19,000 homes are directly impacting houses on each side, as well as across the street."

Because foreclosures are sold for less than their mortgage amounts, the effect is to reduce property taxes collected by cities, "directly impacting things such as schools and the ability to fund fire and police departments," Urban said. Also, children are yanked out of schools as parents are forced to move.

About the only beneficiaries are first-time home buyers who can get deals, he said.

"Right now is a great time to buy," Urban said. "I'm looking forward to the day when we can call it the Homeownership Hotline, instead of the Foreclosure Hotline."

Denver showed the largest number of foreclosures at 5,375 in the first three quarters, and the biggest percentage increase from the same period last year, at 50.6 percent.

One of the hardest hit areas in Denver has been the northeast neighborhoods of Montbello and Green Valley Ranch.

It's estimated that 72 percent of the home sales in those neighborhoods are either foreclosures or short sales, where the lender accepts less than the mortgage payment.

To deal with the foreclosure crisis there, on Saturday a nonprofit group called the Montbello/Green Valley Leadership Coalition will host a health expo that will include two workshops on foreclosures.

Denver City Council President Michael Hancock said it makes sense to have information about foreclosures at a health expo because the stress from a foreclosure impacts health.

Tracy Williams, who grew up in Montbello and is planning the "Our Health Matters Community Health and Information Expo," said the biggest response to the conference has been the two free foreclosure workshops. The expo will be held from 9:30 a.m. to 3:30 p.m. at the Rachel B. Noel Middle School, 5290 Kittredge St. The one-hour foreclosure workshops will start at 11:30 a.m. and 1:30 p.m.

"We're expecting 100 to 150 to attend," said Williams of Trade Winds Communications.

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