The US is experiencing one of its worst downturns. Unemployment is at an all-time high. As people lose jobs even those with very sound credit history are faltering on mortgage payments. Hence, banks are taking over the properties and foreclosures have become common.
However, with the real estate scenario improving, foreclosures are declining. Take for instance, Larimer County. It witnessed the largest drop in foreclosures last month as compared to the previous year. This was revealed by the Colorado Department of Local Affairs Division of Housing.
In fact, foreclosure filings had plunged by 24 per cent in comparison to last year’s figures. Foreclosure sales have gone up by 2.8 per cent. This drop in foreclosures is because of the robust economic growth of Colorado. In fact, Colorado’s economy has improved considerably. Billie Jo Downing, who is an employee of the Re/Max Action Brokers, says that the most important thing now is to make jobs steady.
Downing, who is also the chairperson of the Larimer County Foreclosure Prevention Task Force, says that if the economy improves, foreclosures can be prevented as well. She says that the issue of bad loans has been addressed now there has to be an improvement in the employment scenario. .
The foreclosure scenario has much to do with the demand and supply. In general, the stock of foreclosed homes has now gone down. The inventory of Fort Collin has also declined by 3 per cent. Even the inventory of Loveland has dropped by 10 per cent. What is encouraging is that home sales have improved. The price tag of the homes is around $182,000 to $200,000. This indicates that the market is indeed a healthy one.
Sara Gilbert, an official of Consumer Credit Counseling Service of Northern Colorado said people are no longer as concerned about mortgages as they were earlier. Of course, Colorado Foreclosure Hotline still receives calls. In February, there were a record number of 100,000 calls ever since the hotline came into operation since 2006. The callers are obviously more educated than before. They are also seeking assistance earlier than usual but does it actually mean less number of foreclosures? One does not really have the statistics to prove this.
Ryan McMaken, a spokesperson of the Division of Housing, said that foreclosure filings are still high. Yet, they have started to level off. That is definitely an indication of good things to come.