RealtyTrac: Colorado foreclosures down 27 percent

Colorado foreclosure filings in August were down 27.4 percent from August 2011, compared with a 15.2 percent year-over-year decline for the nation, according to a report released today by RealtyTrac.

Overall, Colorado posted the 10th highest foreclosure rate in the country, according to RealtyTrac. The Irvine, Calif.-based company tracks every aspect of the foreclosure process, which varies from state to state. RealtyTrac includes everything from the first notice of the foreclosure filing to a homeowner until it becomes a bank-owned property, known as a REO.

In Colorado, one out of every 617 households is in some stage of foreclosure activity, compared with the national average of one out of every 681 households.

“It looks like most of that decrease that Realtytrac is reporting is coming from a decline in filings,” said Ryan McMaken, spokesman for the Colorado Division of Housing, who prepares his own analysis of foreclosure data, using a different methodology than RealtyTrac.

“Sales were almost up to the August 2011 level in my data,” McMaken said.  “It’s just a sign of more up-and-down movement, which shows we still have a ways to go in being rid of high foreclosure rates.”

McMaken did notice one thing – there were only three Wednesdays in July, while there were five Wednesdays in August. That is crucial because most counties in Colorado typically conduct their real estate auction of foreclosed properties each Wednesday.

His initial analysis of the market found a big drop in foreclosure auctions in July, which will translate into a huge month-to-month increase in August.

“They’re still down slightly year-over-year,” McMaken said.

Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate.

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