Foreclosure filings in Colorado reached a record high of 12,135 during the second quarter, largely a result of mounting unemployment and lenders phasing out moratoriums that previously slowed the number of foreclosures, according to a report released Thursday.
The number of foreclosure filings rose 15 percent from 10,509 in the first quarter. However, for the first half of the year, new filings totaled 22,644, up just 0.3 percent from the 22,567 filed from January through June last year.
“Even if the moratoria were informal, bankers weren’t moving foreclosures forward,” said Ryan McMaken, spokesman for the state Division of Housing. “I had lots of Realtors telling me that they had clients who had not made a payment in six or seven months and hadn’t proceeded into foreclosure yet. That’s coming to an end.”
Still, Colorado is faring better than neighboring states such as Utah, Arizona and Nevada, said economist Jeff Thredgold of Vectra Bank Colorado.
“Those states where housing got really carried away have all had 100 percent increases in foreclosures versus a year ago or two or three years ago,” he said. “The sexy places to buy real estate from 2003 to 2006 were Las Vegas, Arizona, Florida and California. When the real estate markets came back to reality, those states got absolutely hammered in terms of delinquencies.”
Though there have been signs of improvement in the economy, foreclosures are considered a lagging indicator that could take awhile to show improvement. The foreclosure situation, economists say, likely won’t improve until job growth returns.
Statewide, completed foreclosures — in which the house was taken back by the lender — reached 4,999 in the second quarter, up 15 percent from 4,354 in the first quarter.
The largest increases in foreclosure sales were in counties outside metro Denver. For the first half of the year, El Paso County, for example, reported an increase of 30 percent over the same period last year, while Mesa County reported an increase of 143 percent.
The number of higher-priced homes entering foreclosure also is on the rise, said Stephanie Riggi, manager of the Colorado Foreclosure Hotline call center.
“We’re seeing $500,000 to $1 million properties,” Riggi said. “They (owners) just don’t have the income anymore.”
With jumbo loans unavailable to finance upper-end homes, they’re more difficult than ever to sell, said Ron Woodcock of Re/Max Southeast.
Under other circumstances, those owners likely would be able to refinance, but the money is not available.
“On the high-end market, we’re going to see even more of a problem,” Woodcock said.
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
