The good news is that foreclosure filings in Colorado barely rose from 2008 – only a 0.23 percent increase, according to a national report.
The bad news is that Colorado still is ranked No. 10, according to RealtyTrac, based in Irvine, Calif.
The report showed 50,514 total properties in Colorado with some kind of foreclosure action, which equates to 2.37 percent of all housing units in foreclosure. The U.S. average is 2.21 percent. The report also shows one out of every 42 households in foreclosure, compared with one of every 45 for the U.S. average. Foreclosure activity in Colorado, according to RealtyTrac, rose 28.2 percent from 2007, far below the 120 percent average national increase.
“It’s kind of bizarre that Colorado is still in the top 10,” said Ryan McMaken, noting that the overall rate in Colorado is very close to the national rate. Also, Colorado’s foreclosure activity has been basically flat, while it is still rising in many other parts of the country.
“RealtyTrac combines all of the different kind of foreclosure actions,”McMaken noted, while he separates new filings and homes that actually go to foreclosure sales.
“If you dig deeper, you will find that while our filings are still climbing, the number of sales are going down,” as banks work with borrower to modify loans, he noted. “We do show a net increase in activity, and we probably will continue to do so, as long as the number of filings continue to rise.”
Still, rather than the 10th worst state in the nation as far as foreclosures, he said Colorado is really more in the middle of the pack, he said. That is also affirmed my Mortgage Banker Association numbers, which shows Colorado in the middle of the U.S., as far as delinquent loans.
An earlier report by InsideRealEstateNews.com found that while foreclosure filings in the Denver area rose by 6.4 percent in 2009 from 2008, most of the percentage increases were found in Boulder, Broomfield and Douglas counties, while activity was flat or dropped slightly in Denver and Adams county. (For that report, please visit this blog.)
Nationwide, RealtyTrac found more than 3.9 million foreclosure actions - default notices, scheduled foreclosure auctions and bank repossessions — were reported on 2. 8 million properties in the U.S. in 2009, a 21 percent increase in total properties from 2008 and a 120 percent increase in total properties from 2007.
Four states accounted for more than 50 percent of the nation’s 2009 total, with more than 1.4 million properties receiving foreclosure filings in California, Florida, Arizona and Illinois. And almost half of those – 632,573 – were in California.
“That means that 46 other states split the remaining half,” noted McMaken. He said some people might think that the foreclosure pain was spread fairly evenly among the states, but that is not the case.
“What that means a lot of states are clumped together, and there will be a very small percent separating them,” McMaken said.
Foreclosure filings were reported on 349,519 U.S. properties foreclosure filings on 349,519 U.S. properties in December, a 14 percent jump from November and a 15 percent increase from December 2008 — when a similar monthly jump occurred. Despite the increase in December, foreclosure activity in the fourth quarter decreased 7 percent from the third quarter, although it was still up 18 percent from the fourth quarter of 2008.
“As bad as the 2009 numbers are, they probably would have been worse if not for legislative and industry-related delays in processing delinquent loans,” said James J. Saccacio, chief executive officer of RealtyTrac.
“After peaking in July with over 361,000 homes receiving a foreclosure notice, we saw four straight monthly decreases driven primarily by short-term factors: trial loan modifications, state legislation extending the foreclosure process and an overwhelming volume of inventory clogging the foreclosure pipeline. Despite all the delays, foreclosure activity still hit a record high for our report in 2009, capped off by a substantial increase in December. In the long term a massive supply of delinquent loans continues to loom over the housing market, and many of those delinquencies will end up in the foreclosure process in 2010 and beyond as lenders gradually work their way through the backlog.”
Nevada led the nation last year, with more than 10 percent of the homes receiving some type of a foreclosure action in 2009, giving it the dubious distinction of being No. 1 for foreclosures for the third consecutive year.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.