Foreclosure filings fell slightly in Colorado last year, while the number of completed foreclosures fell 16 percent compared with 2007, according to a report today from the Colorado Division of Housing.
The year-over-year decline in foreclosure activity is the first since the division began tracking foreclosures in 2003. It represents a stark improvement from the 40 percent jump in foreclosure filings seen between 2007 and 2006.
“There were fewer completed foreclosures in 2008 than 2007,” said Ryan McMaken, a spokesman for the Colorado Division of Housing.
But he cautioned it remains too early to call a peak in foreclosures, given the weakening economy and rising job losses.
Public trustees recorded 39,307 foreclosure filings in the state last year, compared with 39,915 in 2007. The number of “completed” foreclosures that went to auction fell from 25,320 in 2007 to 21,301 in 2008.
Foreclosure-prevention efforts, a longer period to resolve troubled mortgages and a more accommodating stance by lenders all appear to be contributing to more “saves” or foreclosures that don’t end up at auction.
A change in Colorado law at the start of last year gave borrowers 120 days to cure a delinquency rather than up to 60 days under the previous system.
Lenders, facing a huge backlog, are taking longer to process foreclosures, but some such as Citigroup and Chase have issued moratoriums.
Adams County continued to report the worst foreclosure rate with 2.3 percent of homes experiencing a completed foreclosure. Park, Weld, Denver and Arapahoe counties were next, with rates ranging from 1.9 percent to 1.6 percent.
But completed foreclosures fell 18 percent in Adams County, 19 percent in Weld, 27 percent in Arapahoe and 39 percent in Denver last year in the fourth quarter compared with the fourth quarter of 2007.
El Paso and Mesa counties saw foreclosure filings and sales increase last year, the only two counties in the state where that happened.
Although many borrowers are facing higher payments in their adjustable-rate mortgages, housing counselors are reporting more calls from people in traditional mortgages who are concerned about declines in income.
Income losses can make working out a delinquent loan more complicated than situations where the loan itself is contributing to the default.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
