RealtyTrac reports that Colorado is back up to the #2 most foreclosures in the nation for February, after slipping to #4 in January.
For the past 15 months, Colorado has had the #1 spot locked up for 12 of those months. Losing only November 2006, and January and February of this year.
We are also one of the only states without lending industry regulation, a correlation that cant be ignored.
According to RealtyTrac, Colorado had 1 foreclosure for every 345 households in February, almost triple the national average.
Colorado reported over 5,300 new foreclosures in February, but Colorado real estate officials have publicly complained that because Colorado reports foreclosures as all property in every aspect of foreclosure (pre-foreclosure included), that our state's statistics are over-counted.
Other states only report property as foreclosed after the actual foreclosure sale.
RealtyTrac's report includes properties in all three phases of foreclosure -- notice of default, notice of foreclosure sale and actual sale of the property.
Nationwide foreclosure activity fell 4 percent in February compared with January, but Colorado reported an increase of 9%, according to RealtyTrac.
What this means is fodder for investors, and great bargains for buyers who aren't afraid of a little cosmetic repair.
The best thing to do right now is buy foreclosures and hold them as rentals.
Those 5300 plus reported foreclosures are 5300 families that are still going to need a place to live, and probably cant rent in the traditional fashion, either because their credit is destroyed, or they cant squeeze a family of 5 into a two bedroom apartment.
They are going to have to rent for at least 2 years, until their credit is repaired enough to secure another try at a mortgage.
In the meantime, investors that buy foreclosures and offer them for rent are going to have the best of both worlds. Appreciation and a growing tenant base to compete for rentals.
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