Forty percent more homes entered foreclosure in Colorado last year than in 2006, despite numerous efforts by state and local officials to stem the tide.
Public trustees reported 39,915 new foreclosures last year, compared with 28,509 in 2006. Of that total, 25,320 homes were lost at foreclosure sales last year, compared with 17,451 in 2006, according to a tally compiled by the Colorado Division of Housing.
Statewide, there was one foreclosure filing for every 45 households last year, versus one per 58 households the year before.
Adams County was the hardest-hit area, with one foreclosure for every 23 households. Denver had the highest number of new foreclosures of any county at 7,909.
“We are continuing as if we are looking at another increase this year. We are giving it the full-court press,” said Kathy Williams, director of the Colorado Division of Housing.
The division’s efforts are four-pronged: Build up the capacity of the counseling network, make struggling homeowners aware of the resources available, work with lenders to boost their loss-mitigation programs and work with local governments to get vacant properties back on the market quickly.
After stabilizing during the second and third quarters, foreclosure filings accelerated during the last quarter.
Housing officials aren’t certain if that bump reflected lenders rushing to beat a change in the state’s foreclosure procedures that started in January or the reduced availability of mortgages.
About 39 percent of homeowners entering foreclosure were able to avoid a forced sale of their property in 2006. Last year, only 37 percent were able to resolve their foreclosure, with 25,320 homes going to auction, said Ryan McMaken, who helped compile the survey for the division.
Among the bright spots, the state’s foreclosure-prevention hotline, 877-601-4673, assisted 6,300 families, preventing an even higher foreclosure rate.
Also, large parts of the state continue to report only minimal foreclosure activity, and in some counties the foreclosure situation is improving.
Along the Front Range, housing officials aren’t expecting a turnaround this year in the foreclosure counts.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
