RealtyTrac ranked Colorado No. 8 in the country in the first quarter for foreclosures.
In a report released today, the Irvine, Calif.-based company showed that one out of every 191 households in Colorado were in some stage of foreclosure, from the first filing to the REO (real estate owned) transaction when the bank takes possession of the house. The U.S. average for foreclosures was one out of 230 households. Nevada remained No. 1 for the 62nd consecutive month, with one out of every 95 housing units in foreclosure. Nevada kept the top spot despite its foreclosure activity falling by 62 percent from the first quarter of 2011 and dropping 26 percent from the fourth quarter.
Colorado showed a 16.45 percent drop from the first quarter of 2011, about the same as the national average of 15.9 percent. However, Colorado’s foreclosure activity was up 6.2 percent from the fourth quarter, compared with a 2.25 percent drop for the U.S.
Nationwide, RealtyTrac reported 572,928 foreclosure filings. the first-quarter total was the lowest quarterly total since the fourth quarter of 2007, when 527,740 properties with foreclosure filings were reported.
Foreclosure filings were reported on 198,853 U.S. properties in March, a 4 percent decrease from February and a 17 percent decrease from March 2011. March’s total was the lowest monthly total since July 2007, and also the first monthly total below 200,000 since July 2007.
“The low foreclosure numbers in the first quarter are not an indication that the massive reservoir of distressed properties built up over the past few years has somehow miraculously evaporated,” said Brandon Moore, chief executive officer of RealtyTrac. “There are hairline cracks in the dam, evident in the sizable foreclosure activity increases in judicial foreclosure states over the past several months, along with an increase in foreclosure starts in many judicial and non-judicial states in March. The dam may not burst in the next 30 to 45 days, but it will eventually burst, and everyone downstream should be prepared for that to happen — both in terms of new foreclosure activity and new short-sale activity.”
Contact John Rebchook at JRCHOOK@gmail.com