The media is abuzz with news about Foreclosed homes in Colorado. There was an increase of 23% in new Foreclosed homes in Colorado filing during the first three months of 2008 as compared to the first quarter of 2007. Most of the Foreclosed homes in Colorado were concentrated in Adams and Weld County. Filing of Foreclosed homes in Colorado does not necessarily mean these will end up by being actually foreclosed. During the first quarter of this year there were 11,630 new Foreclosed homes in Colorado. Last year during this time there were 9,443 new Foreclosed homes in Colorado. In 2007 there were 39,915 Foreclosed homes in Colorado. Filings spiked by 6% since the first three months of 2007.
During the 4th quarter Foreclosed homes in Colorado jumped to 10,955 and then ran on to 11,630 Foreclosed homes in Colorado during the first three months of 2008. Across Colorado State the foreclosure rate was 1:159. The maximum concentration of Foreclosed homes in Colorado was in Denver and the two counties of Adams (1:86) and Weld (1:102).
Foreclosed homes in Colorado increased by 30% in 2006 and by 40% in 2007. Actual foreclosure sales did not keep pace with listings – it rose by a mere 5% year-by-years. During the first three months 5,875 units were sold as compared to 5,586 in the previous year during the same period. In 2007 the units sold numbered 25,320. New Foreclosed homes in Colorado were recorded most in El Paso and Douglas County with increases of 47% and 78% from the numbers of the previous year during the first quarter.
Analyzing the three main causes for Foreclosed homes in Colorado it is said that the purchasers had bought houses beyond their means. In other words Foreclosed homes in Colorado are primarily because of irresponsible borrowing. Many do not agree fully with this angle. Another cause for Foreclosed homes in Colorado is that most of the loans (40%) were taken on new loans and from mortgage companies associated with the builders. This accounts for plenty of predatory lending. Most of those caught in the foreclosure net were first time nest-builders, or minorities. The third important cause is personal – job loss, divorce, illness or death. These things can strike anybody any time without warning.
Apart from the above primary three causes a fourth cannot to ignore are the lifestyles of the people who hike up credit card dues for fancy living beyond their means. They never thought about the morrow. No wonder foreclosures followed.
