Colorado ranked seventh among states for the percentage of home loans that started the foreclosure process during the first quarter of the year, according to a study released Monday by the Mortgage Bankers Association.
The percentage of Colorado home loans that entered the foreclosure process was 0.62 percent. That equates to 5,795 loans that entered foreclosure out of 934,699 loans serviced. The national average was 0.42 percent, according to the Washington- based association.
Compared with the first quarter a year ago, the study reported that the percentage of home loans in foreclosure nationally decreased for all loan categories except subprime loans, which carry higher interest rates than most home loans.
According to a separate study, Colorado ranked first among states in March and April for the percentage of all homes in some stage of foreclosure, according to RealtyTrac, which tracks foreclosure data. The next Realty Trac numbers are due this week.
The number of Colorado homes in foreclosure and the state’s modest job growth will likely produce weak home appreciation rates in the near future, said Patty Silverstein, an economist with Development Research Partners in Littleton.
“That’s not exactly good news for homeowners,” she said.
The six states that had a higher percentage than Colorado in home loans that began the foreclosure process in the first quarter were Indiana (1.07 percent), Ohio (0.97), Michigan (0.81), Oklahoma (0.65), Kentucky (0.64) and Georgia (0.63).
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
