By one measure, foreclosure activity in Colorado is declining. By another, foreclosures are still going through the roof.
The good news is that completed foreclosure sales in Colorado during 2009 fell 4 percent from 2008’s totals, and have fallen 18 percent since 2007, shows a state report released today. However, foreclosure filings were up 18 percent in 2009 from 2008, rising to a record 46,394. Read the rest of this entry »
The Denver-Aurora metropolitan statistical area ranked No. 46 out of 203 markets – big and small – tracked by RealtyTrac, the Irvine, Calif.-based company that collects foreclosure data, nationwide.
One out of every 36 households in the Denver area received some kind of foreclosure notice last year, according to RealtyTrac’s Year-End 2009 Metropolitan Foreclosure Market Report released today. That compares to one out of 45 households nationally.
While foreclosures across the U.S. were up 21.2 percent from, they were down about 12 percent in the Denver area, according to RealyTrac.
The Greeley area was ranked No. 29, with one out of 24 households receiving a foreclosure notice, up 6.5 percent from 2008. Colorado Springs was No. 50, with one of 39 households in foreclosure, an 11 percent increase from 2008. Fort Collins-Loveland was No. 70, with one out of 50 households in foreclosure, 19.7% higher than in 2008, and Boulder was ranked 115th, with one out 77 households in foreclosure, a 28 percent jump from 2008.
Ryan McMaken, of the Colorado Division of Housing, who plans to release his own statewide-foreclosure report next Thursday, today said the RealtyTrac numbers seem to capture what is happening in Colorado. However, he said because of RealtyTrac’s methodology of combining all foreclosure actions and treating them as one number, its data will differ for his. Read the rest of this entry »
Despite the global recession in 2009, Denver-based RE/MAX International, Inc. sold 630 franchises worldwide last year, while extending its presence into eight new countries. In North America, several former competitors joined the RE/MAX Network, bringing with them more than 650 individual sales associates.
“We continue to sell franchises in this economy, because RE/MAX offers the best value in the marketplace,” said Vinnie Tracey, President, RE/MAX International Inc. “By joining RE/MAX, our new franchisees and our former competitors know they’re getting the power of a world-class brand, and all the cutting edge technology and training that comes with it.” Read the rest of this entry »
Developer Ray Pittman is the new chair of the Aurora Economic Development Council
Ray Pittman, founder and president of Denver-based Pittman Development Group, Inc., a commercial development and investment company , has been named chair of the board of the Aurora Economic Development Council.
He succeeds Jay Gershen, D.D.S., Ph.D., former vice chancellor for external affairs of the University of Colorado Denver and currently president of Northeastern Ohio Universities Colleges of Medicine and Pharmacy, who served as chair for 2009. Pittman will direct the board for a one-year term. This will be Pittman’s ninth year serving on the Aurora Economic Development Council board of directors.
Pittman’s background includes more than 24 years of experience in commercial real estate brokerage, services, acquisition and development. During this time he has managed some of Colorado’s largest and most prominent commercial and mixed-use projects. Read the rest of this entry »
Denver’s proposed new zoning code might make cap and trade seem simple.
Luckily, Kenny Be of Westword - with a nod to Bob Dylan - has laid out the salient points of the code, in a way that only Kenny Be could.
Go to this link to see it. You won’t regret it.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.
Margaret Kelly, CEO of RE/MAX International, has been named to the board of the Denver branch of the Federal Reserve.
Margaret Kelly, Chief Executive Officer for Denver-based RE/MAX International, Inc., has been named to the Board of Directors, Federal Reserve Bank of Kansas City-Denver Branch. She is joining six other board members in working with the reserve Bank, lending her insight and expertise on the regional economic front.
“It’s a great honor and privilege to serve on the Denver Board,” Kelly said after attending her first board meeting. “I’m very impressed with the dedication and careful consideration all the board members bring to their position, and I’m looking forward to being a contributor in the future.”
Kelly was chosen for her knowledge and experience in real estate, and her “on-the-ground” skills. She will bring her familiarity of housing issues and challenges to the board, as well as her reputation as a well-respected industry leader. As a member of the board, she will provide real time housing information and advise the bank on economic policies.
Kelly has also just been recognized by Inman News as one of the Top 100 Most Influential Real Estate Leaders in 2009, and was named one of Real Estate’s 25 Most Influential Thought Leaders by REALTOR magazine. Kelly is a popular source of insight on real estate trends, and speaks before industry groups around the United States and is frequently interviewed by the media.
Kelly became Chief Executive Officer of RE/MAX International in October 2005, capping a series of leadership positions she has held since joining the organization as a Financial Analyst in 1987. Kelly rose rapidly through the ranks of the Membership Services and Regional Services departments, being named vice president in 1992 and president in 2002. Today, she oversees the worldwide operations of RE/MAX International.
The Federal Reserve Bank of Kansas City is the 10th of 12 districts in the Federal Reserve System, and provides services to financial institutions and the public. The Denver Branch is one of three branches of the Federal Reserve Bank of Kansas City, and covers the states of Colorado, Wyoming and northern New Mexico.
Each branch has its own board, and has seven members, four of whom are appointed by the Kansas City Board of Directors, the remaining three by the Board of Governors of the Federal Reserve System in Washington, D.C.
Kelly was appointed to serve the remainder of a three year term that expires in December of 2010. Each member of the board is allowed to complete two three year terms. She joins directors as: Bruce K. Alexander, president and CEO of Vectra Bank, Colorado, Charles J. Brown III, president of C.H. Brown Company, and Anne Haines-Yatskowitz, president and CEO of ACCION.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865
The fourth and final review draft of Denver’s new zoning code and map will be published at this link on Wednesday instead of today (Jan.18) as originally scheduled. The remainder of the new code adoption schedule does not change.
This schedule provides a full month for public review leading up to the Denver Planning Boards formal public hearing on Draft No.4 Feb. 17. The location and time of the hearing will be posted on NewCodeDenver.org once they are determined.
Prior to the planning board hearing, staff from Denver Community Planning and Development will hold a fourth round of ”New Code Office Hours” to answer questions about Draft No.4 of the proposed new code. These sessions offer the opportunity for one-on-one meetings tailored to specific questions from residents and property owners. They will be held Tuesday, Feb.9, from 3 p.m. to 5 p.m., and Thursday, Feb. 11, from 11 a.m. to 2 p.m. Both sessions will be held in the Webb Municipal Building, 201 W. Colfax Avenue, in the 4th floor conference room 4.I.4. If you plan to attend the new code office hours, please register at the following link , so the city can schedule adequate staffing.
The city said it is “thrilled” at the level of participation it has received from residential and commercial communities throughout this process.
“We have engaged more than 35,000 people through public meetings and association gatherings, e-mails, phone calls, letters and Website interactions,” the city said. “This input has helped us improve each successive draft of the new code so that we can meet our communitys goal of having a clear, predictable zoning code that creates value and economic opportunity for homeowners and other property owners and preserves Denvers economic vitality and outstanding quality of life.”
The remainder of the new zoning code process is as follows:
Feb. 17:Planning Board public hearing, after which the board will forward a recommendation to City Council
March 10: Blueprint Denver Committee of Denver City Council considers new code and whether to approve filing a bill for adoption by the full City Council
March 16: Mayor and council review and discuss Blueprint Denver recommendation
March 18:Community Planning and Development files a bill for an ordinance adopting the new code to be considered by
City Council
March 22: City Council first reading of new code ordinance proposal
April 19: City Council public hearing and final consideration of proposed ordinance adopting the new code.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865
U.S. Housing and Urban Development Secretary Shaun Donovan today announced that HUD is awarding $42.4 million in Recovery Act funding to two Denver organizations, under HUD’s Neighborhood Stabilization Program (NSP).
The NSP grants announced today are part of $2 billion awarded nationwide to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes while creating jobs. The Denver Office of Economic Development will receive $18. 9 million and the Chicanos Por La Causa, Inc., is funded $23.2 million.
Funded through the American Recovery and Reinvestment Act of 2009, this round of NSP grants is being awarded competitively to applicants that developed the most innovative ideas to address the impact the foreclosure crisis has had on local communities, while demonstrating that they have the capacity to be responsible stewards of taxpayer dollars.
“Vacant homes have a debilitating effect on neighborhoods and often lead to reduced property values, blight, and neighborhood decay,” said Donovan. “This additional $2 billion in Recovery Act funding will help stabilize hard hit communities by turning vacant homes from eyesores into community assets. The Neighborhood Stabilization program is a key part of the Obama Administration’s comprehensive approach to address the national housing and economic crisis.”
The Denver Office of Economic Development’s $18.9 million award is to be used in targeted areas across 20 census tracts to address foreclosures and vacancies causing destabilization.
Denver plans to return 325 abandoned or foreclosed properties back to productive use to create affordable housing for households whose income does not exceed 120 percent of area median income, with 25 percent of funds directed towards households at or below 50 percent of area median income.
Denver will acquire and rehabilitate 245 abandoned or foreclosed homes; bank 15 properties; demolish 50 vacant properties; and redevelop 35 vacant or demolished properties as housing. Additionally, 195 households will receive financing mechanisms in the form of loan assistance to ensure that low- and moderate-income households will be able to purchase affordable homes near public transit lines.
The goal of these activities is to increase sales of residential properties and raise median values in targeted neighborhoods while supporting local business development, creating jobs, and ensuring better public transit. The Consortium will also use $4,450,000 in other funds to ensure neighborhood stabilization.
Chicanos Por la Causa in a consortium agreement with Affordable Homes of South Texas, Community Development Corporation of Brownsville, El Paso HOAP, Tierra del Sol Housing Development Corporation, YES Housing, Inc., CHISPA, Inc., New Economics for Women, Colorado Rural Housing Development Corporation, Del Norte/Northeast Denver Housing Center, Mi Casa, Inc., Norris Square Civic Association, and The Resurrection Project has been awarded more than $137 3 in NSP2 funds.
These funds will be used in targeted areas across 332 census tracts in eight States, including Colorado, to address foreclosure and abandonment in the housing market and to create affordable housing for Latino communities.
The consortium proposed to use the awarded funds to demolish 165 blighted properties, land bank 203 foreclosed homes, and produce 1,998 affordable housing units through the purchase and rehabilitation of foreclosed or abandoned homes, financing mechanisms, and redevelopment of vacant or abandoned properties. These activities will benefit households whose income is at or below 120 percent of area median income, with 25 percent of the funds for households at or below 50 percent of area median income. These funds, and the leveraging of $12,012,000 in other funds, will lead to neighborhood stabilization by improving the housing market through the creation of affordable housing in the targeted communities.
The Neighborhood Stabilization Program was created to address the foreclosure crisis, create jobs, and grow local economies by providing communities with the resources to purchase and rehabilitate foreclosed homes and convert them to affordable housing.
Last year, HUD awarded nearly $4 billion in NSP formula funds to over 300 grantees nationwide to help state and local governments respond to rising foreclosures and falling home values.
In addition, on August 26, 2009, HUD awarded $50 million in technical assistance grants to help grantees more effectively manage the inventory of foreclosed homes they purchase under the Neighborhood Stabilization Program. HUD’s NSP technical assistance grants are helping NSP recipients to implement sound underwriting, management, and fiscal controls; measure outcomes created by public funds; build the capacity of public-private partnerships; develop strategies to serve low-income households; incorporate energy efficiency into NSP programs; provide support, and training on the operation of ‘land banks’; and train NSP recipients on HUD program rules and financial management requirements.
The additional $2 billion in NSP grants being awarded today will build on the work being done now to help state and local governments and non-profit developers collaborate to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low- to middle-income home buyers. Grantees can also create “land banks” to assemble, temporarily manage, and dispose of foreclosed homes.
The Neighborhood Stabilization Program will also help to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance funds through NSP. In addition, it will protect homebuyers by requiring grantees to ensure that new homebuyers under this program obtain a mortgage from a lender who agrees to comply with sound lending practices.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.
Dec 21
This year is unlikely to set a record for foreclosures.
Foreclosure sales at auction in Colorado’s largest counties fell 13 percent in the first 11 months of the year, compared to the same period last year, according to a state report released today.
The report by the Department of Local Affairs – Division of Housing, shows that completed foreclosures declined, but new foreclosure filings rose 12 percent for the period of January to November compared year over year.
There were 32,744 foreclosure filings and 17,160 foreclosure sales from January to November of last year. There were 36,628 filings and 14,975 sales during the same period this year.
Comparing the month of November this year to November last year, foreclosure sales fell 0.5 percent from 1,520 to 1,512, while new foreclosure filings rose 11.8 percent from 2,506 to 2,802.
Foreclosure activity fell from October to November.
Foreclosure sales fell 0.4 percent, and foreclosure filings fell 13.4 percent. Monthly totals peaked in July of this year when foreclosure sales reached 1,869 and foreclosure filings totaled 3,855.
Mesa County reported the largest year-over-year increase in completed foreclosures, with an increase of 181 percent
Boulder County and El Paso County reported increases of 126 percent and 11 percent respectively, while all other counties surveyed reported decreases in the number of completed foreclosures.
Adams County and Arapahoe County reported decreases of 22 percent and 20 percent respectively. Denver County reported the largest decline of 33 percent.
However, no counties reported decreases in new foreclosure filings for the same period. Adams and Denver Counties reported no change in totals, but all other counties surveyed reported increases, with Mesa County and Boulder County reporting the largest increases of 139 percent and 39 percent respectively.
“At this point, it appears very unlikely that the number of completed foreclosures will reach the total set in 2007 and 2008,” said Ryan McMaken, a spokesperson with the Colorado Division of Housing. “November was a relatively light month for foreclosures, but with new foreclosure filings still up compared to last year, foreclosures will continue to be a challenge.”
Foreclosure rates in metropolitan counties vary considerably. Adams County and Weld County tied for the highest foreclosure rate with 61 households per foreclosure completed year to date. Pueblo County reported a rate of 84 households per foreclosure, and Arapahoe County report 85. Boulder County reported the lowest rate among counties surveyed with a rate of 326 households per foreclosure. In spite of recent increases in foreclosure activity, Mesa County reported the second-lowest foreclosure rate of 199 households per foreclosure.
For all counties surveyed, the overall foreclosure rate was 128 households per completed foreclosure.
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County 2008 2009 Percent Change
Adams 3232 2515 -22
Arapahoe 3222 2585 -20
Boulder 159 360 126
Broomfield 116 113 -3
Denver 4220 2810 -33
Douglas 998 948 -5
El Paso 2010 2234 11
Jefferson 1746 1508 -14
Larimer 759 727 -4
Mesa 102 287 181
Pueblo 717 719 0
Weld 1449 1448 0
Total 17160 14975 -13
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County 2008 2009 Percent Change
Adams 5227 5215 0
Arapahoe 5426 5590 3
Boulder 947 1316 39
Broomfield 248 306 23
Denver 5717 5740 0
Douglas 1922 2408 25
El Paso 4179 4886 17
Jefferson 3340 3670 10
Larimer 1493 1947 30
Mesa 442 1058 139
Pueblo 1222 1456 19
Weld 2581 3036 18
Total 32744 36628 12
In the first nine months of this year, the U.S. Department of Housing and Urban Development acquired 2,310 homes in Colorado that had Federal Housing Administration-loans.
Yet, as of today, HUD has 300 homes listed for sale in Colorado. And some of them are not on the open market. Some of the homes are first offered to non-profit groups, as well as teachers and others before investors or owner-occupants can bid on them. Weld has the most foreclosures listed at 41, while Adams and Arapahoe counties each have 38. El Paso County had 37 and Denver 30. A number of counties only had one foreclosure listing, including Archuletta, Chaffee, Huerfano, Kit Carson, Montrose, Otero and Rio Blanco.
And while it has sold 2,542 homes to other buyers so far this year – some of them acquired last year – it appears that HUD must have a backlog of homes that it owns, but they are not actively marketing.
“That is the insanity of it,” said Bobby Burnett, owner of Keller Williams Realty – DTC. “I don’t think they want to put all of this stuff on the market at once and just saturate it. I think they are just sitting on it. That is my opinion.”
If that is the case, he has mixed feeling about it.
“It’s not a bad thing,” Burnett said. “If you dropped another 2,300 homes on the market at once, it would have a very negative impact on prices and the market. The only bad part of is that the longer the property sits there, it deteriorates more, and hurts the value of that property and the surrounding neighborhood.”
Also, the homes that HUD appears to be sitting on, are part of a “shadow market,” that next year could swamp the market, driving down prices, he warns. Banks, by some estimates, likely own thousands of more homes that they have yet to offer to buyers. (For more on the shadow market, please visit my previous blog on the subject.)
It’s a far cry from the late 1980s, when HUD used to buy thick weekly special sections in the Rocky Mountain News and Denver Post, listing all of its homes for sale, noted Nickolas Terry, a broker with RE/MAX Leader.
During that foreclosure crisis, caused by an exodus of jobs from Colorado when the energy market collapsed and over-building in anticipation of a boom that went bust, HUD became the largest single landlord in the Denver area. The foreclosure crisis was known as the “death spiral” and in some cases HUD would pay buyers $500 to take houses off its hands.
Steve Cramer, principal of Exit One Realty, said from the time HUD acquires the homes until the time it hits the market, is not a speedy process.
Cramer said that HUD gets the title of a home with an FHA-insured mortgage from the lender, after it has been sold at a public trustee auction. Then, a company called Michaelson, Connor & Boul, (better known as mcb Colorado), which has a contractual relationship with HUD, inspects the property. A FHA appraisal is needed to determine the asking price, and the home is winterized. Then, mcb doles out the homes to 16 designated brokerages (including his) by ZIP Code, he said. The listing broker only receives $100 per home, he said, but the broker who brings a buyer can typically expect to make $1,300 to $1,400 on each home sale, Cramer said.
“From the time HUD takes possession until it is put on the market can sometimes take four to six months.”
Related blogs:
Drop in HUD prices probably a quirk
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County HUD foreclosure listings
Adams 38
Arapahoe 38
Boulder 4
Broomfield 2
Denver 30
Douglas 6
Eagle 2
El Paso 37
Elbert 3
Jefferson 18
Kit Carson 2
Mesa 16
Pueblo 25
Rio Blanco 1
Weld 41
John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... (Read More) 
