Things Looking Rocky as Foreclosure Filings Expected to Climb Higher Still

September 10th, 2007

Experts are finding it very difficult to predict whether the foreclosure count will slow down this year in Colorado or not! Fear about the foreclosure filings touching levels of 40,100 by the end of 2007 is tormenting many homeowners. If it happens, then there will be an increase of 42 percent from last year’s 28,436 count.

In a recent report released by the Colorado Housing Division, around 19,467 foreclosures were reported in the state between January and July in 2007. As per their report, the expected figure of foreclosures by the end of this year is between 37000 and 38,100 homes. Division official, Ryan McMaken, added that the figures projected are little modest. He said they are very certain that the foreclosure filings will touch 40,100 this year. According to him, foreclosure proceedings generally gear up in the later half of the year. Public trustees too do not think that the count will go down.

In June, there were 10,015 foreclosure filings and more than half of these filings were reported through the second quarter. Kathi Williams, head of the Colorado Housing Division, is very certain that there will be a further increment in foreclosure filings. According to her, a decline in filings is very unlikely. The driving factor for this increase is the expected leap in the adjustable-rate mortgages and the piling stock of empty homes already present in the market.

Front Range has been adversely affected by foreclosures as the market is already loaded with dozens of inventories. Therefore, owners who want to pay back their mortgages by selling off their homes are unable to do so since there are very few buyers available for trading.

Colorado Housing and Finance Authority head, Roy Alexander, quoted last week that the situation in Colorado and at the national level will degrade more than what it is right now. However, he said that the homeowners who have bought homes by making use of CHFA financing are less likely to fall in the bracket of foreclosure. The reason, he said, is that they provide loans to low and moderate-income group people qualifying for these loans, and before availing these CHFA loans, they have to attend homeowner classes. In these classes, they are educated about the pros and cons of housing deals.

Through the CHFA financing scheme, 1576 houses were sold in the second quarter of this year for $ 140.93 million (mortgage) and $ 181 million was reserved for an extra 2045 loans.