Colorado reported the highest foreclosure rate of any state in March and April.
But looking at a narrower slice of the state, the Denver area, across a longer period, the first three months of the year produces a lower ranking.
Metro Denver reported the fifth-highest foreclosure rate among the country’s 100 largest metropolitan areas during the first quarter, according to RealtyTrac, an online provider of foreclosure listings.
One out of every 105 households in the metro area entered some stage of foreclosure during the quarter, compared with one out of 358 households nationally.
Indianapolis, Atlanta, Dallas-Fort Worth and Memphis, Tenn., reported higher foreclosure rates than the Denver region, which includes Boulder and Weld counties.
Colorado Springs ranked 13th, with a foreclosure ratio of one out of every 155 homes.
Among states, Colorado ranked second only to Georgia for foreclosures during the quarter and led the nation in March and April, according to earlier reports.
Of the top foreclosure cities, Denver shares the most similarities with Atlanta, said Rick Sharga, a vice president with RealtyTrac. Both cities suffered from the telecom industry downturn and a large loss of high-paying jobs.
Although the metro area reports a respectable unemployment rate of 4.7 percent and the local economy is creating jobs, that hasn’t prevented foreclosures from rising this year.
“Some of our residential statistics are just not going the direction we would like them to go,” said Patty Silverstein, an economist with Development Research Partners in Littleton.
She blames the heavy use of adjustable-rate and interest-only mortgages in part. As interest rates have risen, so too have the payments on many such “exotic” mortgages.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
