Metro foreclosures drop in Q2
Filings are down 7.5 percent from first quarter
By John Rebchook, Rocky Mountain News (Contact)
Published July 7, 2008 at 6:54 p.m.
Finally, some good news on foreclosures: Filings in the seven-county Denver area in the second quarter fell by 7.5 percent from the first quarter.
There were 6,992 foreclosure filings in the metro area in the second quarter, compared with 7,565 filings in the first quarter.
In the first half of the year, however, foreclosures are still up 15.6 percent from the same period in 2007.
Foreclosures remain on a record pace with 14,600 filings received in the first six months by public trustee offices in Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson counties, compared with 12,626 in the same period last year. But experts are encouraged that the pace of foreclosures is slowing.
In the first half of 2007, foreclosures rose by 25 percent from the same period in 2006, for example.
Adams County saw a 48 percent increase in foreclosures in the first six months of 2007 compared with the same period in 2006, while this year foreclosures are up 12 percent compared with the first half of 2007.
"I'm hoping that this foreclosure tsunami that has wiped out so many homes is starting to roll back," said Ed Jalowsky, principal of Hottest Homes Realty. "But I still think it is going to take six to 12 months for it all to work itself out."
Jefferson County was the only county to show an increase in the second quarter from the first, and that only rose by 35 foreclosures, or 3.5 percent.
Jalowsky said he thinks the main reason foreclosure filings are dropping is because borrowers in trouble are contacting lenders early in the process, and lenders are more willing to make loan modifications, such as lowering the interest rates and occasionally even lowering the amount of principal owed.
They also are more willing to accept short sales, in which the lender takes less than the mortgage amount, he said.
Zachary Urban, of Brothers Redevelopment, who oversees the Colorado Foreclosure Hotline, said it is too early to say that the worst is over.
"It could be a mirage, or it could be the real deal," Urban said. "Hopefully, this is the beginning of the end."
Urban said that a change in a state law that took effect on Jan. 1 might be playing a role in the drop in filings.
The new law expands the time an owner has to pay off the default before the foreclosure sale and eliminates the owner's rights to redeem property after the public trustee foreclosure sale.
Ryan McMaken, of the Colorado Division of Housing, said the new law might affect the number of foreclosure sales, but that he doesn't think it would make any difference in the number of filings. Not all foreclosure filings go to sales.
McMaken said he had been expecting a slight increase in foreclosure filings in the second quarter from the first three months of this year.
The unexpected drop is the strongest indication yet that the foreclosure crisis may be starting to lose steam, he said.
"This might not be an anomaly, but could be the start of a trend," McMaken said. "On the other hand, there are still a lot of foreclosures out there. Even if we end the year with a 10 percent drop from last year, we're still going to have about 40,000 foreclosures statewide. But I'm a lot more optimistic with this news."
Economist Patty Silverstein said data she collected through May was showing the same trend.
"Whether it was forecasting, or wishful thinking, we thought we might see some tempering of foreclosures this year," said Silverstein, president of Development Research Partners in Littleton.
"We're not ready to proclaim the worst is over, but at least we're heading in the right direction."
rebchookj@RockyMountainNews.com or 303-954-5207
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July 7, 2008
7:51 p.m.
Suggest removal
windskull writes:
well until George Bush and his crony buddies including Mr Credit Card are all wearing stripes swinging 8lb sledge hammers in the hot sun at Ft.Leavenworth making LFR outta BFR, Constitutional justice will NEVER be served!
July 7, 2008
7:56 p.m.
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WarrenJimmyBuffett writes:
Foreclosed homes equal empty homes. 30,000 foreclosures equal 30,000 new homes that won't need to be built (in the metro area). Homebuilders and industries that rely on homebuilding will get crushed until this is mess over. With ARM resets scheduled for many more years and rampant depreciation, this crisis has a lot more legs. Anyone can "hope," but after you understand the fundamentals, you realize that there is no hope for a couple more years. Buy now, lose money.
July 7, 2008
8:34 p.m.
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davies writes:
See everybody! Obama is already working his magic, and he hasn't even been elected yet!
July 7, 2008
8:48 p.m.
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WestminsterJ writes:
Real estate is still grossly overvalued in the Denver area.
July 7, 2008
8:59 p.m.
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BMat writes:
windskull - are you kidding?
July 7, 2008
9:38 p.m.
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fastnloose writes:
George Bush must be the smartest man who ever lived.According to many people out there,he is behind every conspiracy theory that has happened in this country.From oil to war to bad loans,heck he was probably on the grassy knoll in Dallas in 1963.Wonder why all these other brilliant men we've had in the White House over the years could not figure all this stuff out.
Just a question running thru my mind.
July 7, 2008
9:39 p.m.
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commoncents writes:
Even as foreclosures drop, the credit grip is going to keep many people from being able to purchase as they would have been able to a few years ago. And with the cost of heating and cooling homes many of the larger homes are going to prove to be impractical for many people. Homes are going to have to become that, and not investment opportunities again. Ultimately a good thing, just not for the construction workers and big builders.
July 7, 2008
11:10 p.m.
Suggest removal
underthebusinvestments writes:
Foreclosures ebbing? Yeah right:
Monthly Mortgage Interest Rate Resets
http://www.thetruthaboutmortgage.com/...
Dynamic Maps of Nonprime Mortgage Conditions in the United States
http://www.newyorkfed.org/mortgagemaps/
Subprime In Sheep's Clothing
http://www.forbes.com/2008/05/08/alt-...
Don't worry the credit industry will save us:
Indy Mac's Shareholder Address
http://theimbreport.com/
Mortgage Lenders "Metrics"
http://ml-implode.com/
Remember! In an under the bus capitalism system, we privatize profits and socialize losses!
So, the sun never shines when you're under the bus!
-The Bus Driver
July 8, 2008
4:41 a.m.
Suggest removal
LOUIE writes:
Don't worry, with United and Frontier laying off another 600, we'll have more houses hitting the skids. These won't be the only industries knocking off good jobs. So don't worry, there'll be some more foreclosures. Michigan, Ohio, Illinois, plenty of great deals to be had there. GM is hitting the skids along with all the tool and die and other related businesses. Maybe they can turn thier losses around by moving thier factories to Mexico and shipping it across the boarder duty free. Hell go all the way and build it in China, they have favored trade status, and the factories can put out all the pollutants thier little heart desires. No EPA, cheap labor, better tax structure, sure the government there will give GM a sweetheart deal. Our cold will soon be a flu, and McDonalds will be a great job! Don't worry, with more middle class job losses, there will be plenty more foreclosures nationwide. Oh, did the politicians of both party's promise you, sorry if they can't deliver!
July 8, 2008
5:28 a.m.
Suggest removal
Brian1973 writes:
We're reaping what has been sown. This is one of those cases where everyone knew going in it was going to end badly, yet chose to continue anyway.
Lenders took to many credit risks
Buyers bought more than they could afford
Relators got comission happy, and quit worrying about the after effect.
July 8, 2008
6:51 a.m.
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HolierThanThou writes:
The headline giveth and the fourth paragraph taketh away.
July 8, 2008
8:10 a.m.
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Diff writes:
There is plenty of opportunity in the housing market. Great time to buy.For your self or for an investment. This could be the best time to buy in 20 years - and for another 10-20 years looking ahead.
I think maybe we have saw the worst of it or are seeing the "bottom " this quarter - but are not out of the woods yet - it will recover but it is going to be a long, slow recovery, in real estate and for the economy as a whole
Refreshing tho to hear some bit of good news...
July 8, 2008
8:11 a.m.
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Diff writes:
I should rephrase that -- the article is not all "good news" but at least the headline is on a positive note and not another gloom and doom headline, as we have saw so many of over the past 6 months.
July 8, 2008
8:36 a.m.
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fastnloose writes:
People talk about this country getting back to the basics,how about consumers.I loved what happened with our loan problems people finally are having to actually think before they consume.
July 8, 2008
8:47 a.m.
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Cowboy63 writes:
windskull - ???
Are you sure you don't want to change you name to numbskull?
People got way in over their heads with loans they couldn't afford and now the banks that offered the ARMs are getting stuck with the tab - poetic justice.
Politics has nothing to do with this. It is the buyer's responsibility to know the terms he/she is getting into and IF YOU CANT AFFORD IT - DONT BUY IT.
July 8, 2008
8:52 a.m.
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American100 writes:
New homes are still in demand.
Watch real news agency releases and they differentiate between new home sales and existing home sales.
People prefer new over old.
Large numbers of foreclosures were amateur investors trying to flip houses. They paid too much up front and put too much into them thinking they's have the nicest home on the block therefore they'd get the profits. WRONG!
Try to buy and then update a home in Denver. By the time building & zoning is thru with you you're better off buying new.
I hear it all time from my clients asking me to build new.
My construction company is thriving, the banks are still lending on new construction and in fact encourage it in rural areas.
July 8, 2008
9:04 a.m.
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Bob444 writes:
Cowboy63, you are so right. Nobody held a gun to these peoples heads who wanted to live beyond their means at any cost. Blaming politics is so much easier than taking responsibility. Sure, there was some loan fraud, but in the end, if people want to own a home then they need to grow up first, and realize that it is ok to live within their means for awhile. They need to stop letting society tell them that they need more than they can truly afford. It is the oldest credit to consumer trick in the book. Why do credit agencies charge insane APRs on credit cards? Because most Americans lack the willpower to pay them off, and VISA certainly knows that.
July 8, 2008
9:12 a.m.
Suggest removal
Cowboy63 writes:
American100 writes: "Large numbers of foreclosures were amateur investors trying to flip houses."
You got that right.
Most of these foreclosures are "flippers" who got caught with their pants down. There are houses in my neighborhood that haven't been lived in since they were built 9 years ago! They bought up these houses and now are stuck with a bad investment and the upkeep to boot. Now they are just walking away from the loans.
July 8, 2008
9:16 a.m.
Suggest removal
robbyr2 writes:
"Politics has nothing to do with this. It is the buyer's responsibility to know the terms he/she is getting into and IF YOU CANT AFFORD IT - DONT BUY IT."
I don't disagree with any of these sentences, however, I would add that if you're planning to sell the loan you're making to someone else, it is your responsibility to know (within reason, i.e. absent illness, divorce etc) that that person can repay the loan.
July 8, 2008
9:23 a.m.
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ofcourse writes:
What....my payments are going up!! I didn't know they'd go up that much. I've shown many a short sale home in foreclosure, meaning the NED has been filed. Inside, two flat screen TV's, and three computers. Outside, two jet ski's, and a $60,000 Cadallic Esclade in the drive way. Wonder if the underwriter who approved the loan really looked at the file and the ratio's. Other's I've shown were truly in desperate straights. My heart goes out to those who lost jobs or had medical issues.
Many of us professional agents advised our clients of the risk involved and did our due diligence to protect them. Some went ahead with the ARM's and others didn't. At least I can sleep at night.
I've counseled many folks that have no clue what they signed. Had no idea what the Deed of Trust is or what was in it. Sometimes you just can't protect people from their own greed or ignorance.
Even the flippers who watch late night TV and pay for a system have no clue. Most experienced flippers tell me they didn't get it until they did their third deal and say "experience is the best teacher" or " if I'd known then, what I know now".
July 8, 2008
9:55 a.m.
American100 writes:
(This comment was removed by the site staff.)
July 8, 2008
10:05 p.m.
Suggest removal
American100 writes:
Why was my last comment removed by the staff?
Seriously, why? There was nothing other than mentioning I had closed on a foreclosure property listed by milehighreo.com.
And quoted a question by a poster from a previous article.
July 8, 2008
10:08 p.m.
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American100 writes:
Oh, and I told brokers to forget about the big commissions.
July 9, 2008
4:44 a.m.
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LOUIE writes:
American100, chalk up another one for John Temple's hired guns; they disagree, some thinskin calls in, zip...you're gone! Sad, isn't it?
July 9, 2008
9:38 a.m.
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American100 writes:
Actually, I got in touch with the writer, and he said he didn't know why I was deleted.
It really is strange something as benign as that would be zapped.
July 29, 2008
9:58 p.m.
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windskull writes:
cowboy63 au contraire who was it that stood at podium in front of stacks of CHINESE CARTONS whose labels had been switched to read USA a few years ago telling citizens buy,buy,buy & the incessant droning about a homeowner society oh come now it should be easy for one so articulate after all he too claims the cowboy mantra.