Colorado Foreclosure Rate Rises in First Quarter

The first quarter of 2008 saw another surge in foreclosure homes in Colorado, as the state’s overall foreclosure rate rose more than 23% over the statistic totals for the first quarter of 2007. The 11,630 foreclosure filings that occurred during the first three months of the year was also 6% higher than the totals for the fourth quarter of 2007.

The counties with the highest rates of foreclosure were Adams and Weld counties, which saw significant development during the real estate boom, and a sub sequent loss in property value when it ended. Homebuyers and investors whop took out expensive mortgages lost lots of money on these properties when property values came down, and as a result many simply let their properties go into foreclosure, unable to sell or refinance for an amount even close to their original mortgage amount. The foreclosure rate for the state currently hovers around 1 in every 160 homes, well above the national average.

The amount of homes being sold off at foreclosure sale also increased by roughly 5%, a sign that more homes going into default are ending up being sold off at auction. This means not only more chances to buy at auction, but also many more chances for pre foreclosure purchase as people look to avoid a foreclosure sale by selling early.

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