Denver Area is Seeing a Decline in Foreclosure Numbers

January 26th, 2009 | Tags: Foreclosure

For the first time in more than twelve years the Denver area is seeing a decline in foreclosure numbers. This is at a time when the rest of the nation continues to be deluged with foreclosures.

In the seven-county Denver region there were 24,494 foreclosure postings with public trust offices. It calculated to 11.8% drop from the numbers noted in 2007 – it being 27,785.The worst period was from 2006 and 2007 when there had been a jump of 41.5%. The second worst year was 2008.

Since the middle of the 1990’s the number of foreclosures have been steadily increasing each year. In the late 90’s the economy was comparatively strong and the increase of foreclosures was less in comparison to the growth of houses and population.

Rick Sharga of ReatlyTrac commented, “It is possible that Colorado has gone through the worst of its foreclosure cycle. Nationally we are seeing huge increases.”

Mike Rinner of Genesis Group said that the Denver region had been suffering from the foreclosure malaise for a much longer period than the other parts of the country. It is also coming out of the mess earlier than the rest of America. He said, “I think it is a sign of times. I think the market is ready to start on the upward track. But I think it is going got be a long slog.”

Neither of the experts, Sharga or Rinner, was willing to say that the foreclosure crisis was over.

Carol Snyder, the Public Trustee of Adams County explained that the fall in the foreclosure filings is due to many reasons and not to any one cause. She pointed out that lenders have temporarily put on hold foreclosure proceedings and are more amenable to workouts with borrowers to avoid foreclosures. Short sale options are being seriously considered by which the lender accepts a loss but avoids cumbersome foreclosures. The recent trend shows that the more rich borrowers are now defaulting while previously the victims were those with modest and low incomes. The latter group had fewer alternatives before them. She added, “I think the decrease in the number of filing has been somewhat of a blip to the extent that when the hiatus goes away, we could be dumped with a higher number of foreclosures again.”

Sharga however is not pessimistic and points to the success of Colorado Foreclosure hotline.