Foreclosure Update for June 2010 - reported August 2010
In this economy, before people spend money, they want to know they are getting a good deal. That's why I get asked about foreclosures almost every week! The assumption is that a foreclosure is a deal. Usually this assumption is correct. However, with foreclosures and short sales, you don't always have the perfect property available.
Since January 1, 2010, there have been 263 foreclosure actions; 163 with fee simple (100%) ownership, and 74 for timeshares. The other 26 are unknown. Thirty-eight of these occurred in June. One hundred and eighteen of the 263 are in Breckenridge (but note, that all timeshares are in Breckenridge, so 74 are timeshares). Twenty-nine are in Silverthorne; 13 in Blue River, 12 at the Breckenridge Golf Course, 14 in Frisco, and nine in Dillon Valley, and eight each in Summit Cove and Wildernest.
The breakdown of the type of foreclosure actions are as follows. There have been 195 Notice of Election and Demands which is the first step in the foreclosure process. This starts the foreclosure timeline and is not yet a sale of the property. There have been 14 Certificate of Purchase actions which is where the Public Trustee offers the property at public auction. Any purchaser must pay more than the debt itself owed to the lien holder filing the foreclosure action plus any fees. The purchaser has the duty to research whether there are any other outstanding liens on the property. There has been 54 Public Trustee's Deeds since January 1, 2010. This is the stage of the process where the holder of the Certificate of Purchase obtains ownership of the entity. Most often this is the bank holding one of the liens.
In terms of property types, 81 single family homes, 64 multifamily units, 9 parcels of vacant land, 4 developments, 5 commercial properties, and 74 timeshares in Summit County had foreclosure actions filed against them in 2010.
If you are interested in buying a property that is a foreclosure, short sale or bank owned, don't count on it meeting your "perfect property" criteria. The discount you will receive in the purchase price, often comes with the price tag of trading some of your "perfect property" requirements. Also, for short sales, don't expect the process to be fast and easy. Bank approvals take much longer than getting a Seller to agree to a price. If you need a property, and you need it fast, a short sale or bank owned property may not be for you.
If you have any questions about short sales, bank-owned properties, or foreclosures in Summit County, Colorado, please email me at anakos@landmarkregroup.com, or call me at 970-389-8388.
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