John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... New foreclosure filings in Colorado again topped 12,000, marking the fourth consecutive quarter in which foreclosure filings have increased.
The number of completed foreclosures grew for the third quarter in a row, reaching a total of 5,618, according to a report released today by the Colorado Department of Local Affairs’ Division of Housing.
New foreclosure filings reached 12,468 during the third quarter for a nine-month total of 35,112, a 17.6 percent increase from the 29,852 filings in Colorado during the first nine months of 2008. .Completed foreclosures reached a 9-month total of 14,971.
During the full year of 2008, there were 39,333 total foreclosure filings and 21,301 total completed foreclosures.
In spite of growth in recent quarters, however, the total number of completed foreclosures fell during the first three quarters of the year when compared to the same period last year.
The 14,971 completed foreclosures in the first nine months of the year represented an 8 percent drop from the 16,265 during the first nine months of 2008. Not all homes that enter the foreclosure process end up being sold by public trustees at auctions. Some owners retain their homes through loan modifications and others sell them through short sales, in which the lender accepts less than the mortgage amount.
“The fact that completed foreclosures have been flat or falling as new foreclosures have risen is certainly a credit to our housing counselors,” said Stephanie Riggi, manager of the Colorado Foreclosure Hotline’s call center. “Plenty of new people are entering the foreclosure process, but fortunately, many of them are finding help with housing counselors and by using strategies such as loan modifications that don’t lead to a full foreclosure.”
Riggi noted that calls to the hotline (877-601-HOPE) have increased and the Hotline has received more than 3,000 calls each month since August of this year.
New foreclosure filings increased 18 percent from last year’s 9-month total of 29,852 to this year’s total of 35,112.
Changes in foreclosure activity varied by region. Comparing the three quarters of 2009 to the same period last year, the report notes that Adams, Arapahoe, and Denver Counties all experienced significant declines in total numbers of completed foreclosures. Denver’s completed foreclosure totals fell 34 percent while Adams County and Arapahoe County both fell 20 percent.
The largest increases in completed foreclosures were found in counties outside of metro Denver. For the first 9 months of the year, El Paso County reported an increase of 18 percent over the same period last year, while Mesa County reported an increase of 173 percent. Weld County, which has been among counties with the highest foreclosure rates in recent years, appears to have moderated significantly with an increase of only 2 percent. All other metropolitan counties reported decreases.
Some smaller counties have been driving increases as well.
Medium-sized counties such as Montrose, Chaffee, Park, La Plata, and Eagle Counties all reported significant increases in new activity in completed foreclosures. La Plata County, for example, reported a 300 percent increase while Eagle County reported an increase of 194 percent.
Foreclosure activity in Colorado has increased in recent quarters following the end of moratoria
An increase in foreclosure activity during recent quarters had been expected. Many lenders and investors had enacted both formal and informal moratoria on foreclosures, which slowed down the foreclosure process for many. As these moratoria were phased out, officials expected to see an increase in the number of new foreclosures. As a result, both foreclosure filings and completed foreclosures have grown each quarter since the first quarter of this year.
“Due to the moratoria and the changes in law, foreclosure totals dipped quite a bit at various times during 2008 and early 2009,” said Ryan McMaken, a spokesman for the Division of Housing. “We seem to have worked through much of that now and the trend points toward a situation in which foreclosures are not increasing rapidly, but they’re not going away either.”
In spite of recent decreases in foreclosure totals in Adams, Arapahoe and Denver Counties, high foreclosure rates persist.
Adams County reported a rate of 74 households per completed foreclosure, while Arapahoe and Denver Counties reported rates of 104 and 113 respectively. The rate in Boulder County, by contrast, was 329 households per completed foreclosure, while Mesa County reported 283 households per completed foreclosure.
The counties with the lowest foreclosure rates included Garfield and Pitkin Counties where there were 619 and 654 households per completed foreclosure, respectively.
The Colorado Division of Housing is a division of the Colorado Department of Local Affairs and collects foreclosure data from Public Trustees on a quarterly basis. The report, and past foreclosure reports, can be accessed online at the Colorado Division of Housing.
Contact John Rebchook at JRCHOOK@gmail.com.
