Foreclosure Steam Seen Cooling In Denver County Area

When the real estate market throughout the country is slumping, exceptionally good news has come from the seven county Denver area. The foreclosure filing rate has gone down by 7.5% in the second quarter over the first quarter. However, there have been 14,600 cases regarding foreclosure in the Public Trustee Offices during the first half of this year, and in comparison to last year’s first half, the rate has shot up by 15.6%. The experts feel that perhaps the trend is slowing down.

Inclusive of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson counties, the seven-county Denver area became famous for its rising number of filings. Adams County, in the first half of 2007, came up with 48% more filings than the first half of 2006. Even in this down trend in real estate property foreclosure filings, Jefferson County still has seen a 3.5% rise in this 2nd quarter over that of the 1st quarter this year.

It seems that this wellness is due to a new Colorado state law, which allows a real estate owner more time to repay his dues, although it restricts his claim after foreclosure sales, said Zachary Urban of Brothers Redevelopment. However, according to him, it cannot be said that the worst is over. According to Ryan McMaken, of the Colorado Division of Housing, the reason might not be the law, as all files don’t reach sales. However, he is happy with the trend change.

Another reason that is supported by most of the experts including Ed Jalowsky, principal of Hottest Homes Realty, is that both the homeowners and real estate lenders are willing to solve their problem through negotiation. The lenders are ready to lower the interest rate and even the principal amount. They are interested in short sales in which they accept less than the original pay out. This was not the case earlier.

Whatever the reason for the slackening of the foreclosure rates, no expert is ready to disclaim that everything is fine and things will not worsen. Although the rate is falling, there are still 40,000 homes to be foreclosed this year in Colorado, and this number is not low by any means. Almost all of them think still it may need a whole year to make any comment on this descending trend having bottomed out. The filing rate has gone down, but that does not mean the foreclosure figures will be scant. However, everybody is taking this trend change positively and looking forward to a trend reversal.

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