More great news for Denver homeowners – according to data released last week by the Colorado Division of Housing, new foreclosure filings in the state dropped in the third quarter (compared to 2009 numbers), while sales of foreclosed properties increased. The 2010 third quarter numbers were down 15% from last year's filings for the same period, leading the Division to project total 2010 foreclosure filings falling below the 2009 total. Foreclosure sales figures were up 18% compared to the same period last year.
There are a variety of reasons for the decrease in foreclosure filings. Primary among these is the fact that lenders and loan servicers have been working their way through their non-performing mortgage loans with more scrutiny, which slows down the process. Many major lenders are reviewing pre-foreclosure documents, amid nationwide controversy over paperwork procedures. According to Stephanie Riggi, manager of the Colorado Foreclosure Hotline, "They're making sure documents are right."
One reason foreclosure sales have increased may have to do with the short-sale process. A short sale is the sale of a property in which the proceeds are less than the balance owed on the property. Lenders often opt for the short sale because a moderate loss on a loan is better than taking back the property or pressing the borrower. In addition, more properties are selling at foreclosure auctions due to the fact that many public trustees have shortened the time between a foreclosure filing and foreclosure sale. The process used to take close to a year; it now takes about four months.
A review of the state's 12 metropolitan counties produced the following numbers for the third quarter:
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Two counties with recently high foreclosure rates had decreases in the last quarter – Adams County had a 12.4% drop year over year to 1,276, and Denver County reported a 22% decrease to 1,275.
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Denver and Adams counties showed the highest number of foreclosure sales. Denver County had 817 sales, up 1% from the prior-year quarter, and Adams County reported 804 sales, up 1.8%.
If you are a homeowner who wants to avoid foreclosure in Denver and you need to know your options, give the Bandy Team a call. We're your local experts; let us assist you in determining the best possible outcome for your situation.
Marianne Bandy
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