Foreclosure filings at 5-year low

Foreclosure filings were up in Colorado during May, but foreclosure auction sales fell to a five-year low, according to a state report released today.

The Colorado Division of Housing report showed that  foreclosure filings in Colorado’s metropolitan counties were up 12.8 percent last month compared to May of 2011, rising from 2,002 to 2,259.

Foreclosure auction sales, however, were down 17.3 percent, falling to the lowest May sales total recorded since 2008.

Among the counties surveyed, there were 965 foreclosure auction sales during May of this year, compared to 1,167 sales during May of last year.

For the first five months of the year, foreclosure filings were up 1.7 percent in 2012 when compared to the same period last year. Foreclosure auction sales, however, were down 27.1 percent over the same period.

Foreclosure filings are the initial filing that begins the foreclosure process, and foreclosure auction sales totals are the total   number of foreclosures that have been sold at auction at the end of the foreclosure process.

“Foreclosure auction sales have now been down nineteen of the last 20 months, comparing year over year, and for now, we can say that fewer people have been losing their homes to foreclosure this year when compared to other years since 2007,” said Ryan McMaken, a spokesman with the Colorado Division of Housing. “On the other hand, filings continue to rise, and since some of those filings will turn into re-possessed homes in the future, we can see that foreclosures haven’t gone away yet.”

Comparing the first five months of this year with the same period last year, the county with the largest decline in foreclosure filings was Boulder County where filings decreased by 16.4 percent. Mesa County, on the other hand, reported a 21.1 percent increase in foreclosure filings over the same period.

Eleven of 12 counties surveyed showed decreases in foreclosure auction sales during the first five months of this year when compared to the same period last year.

The counties with the largest decreases in foreclosure auction sales, year over year, were Denver County and Douglas County, where auction sales decreased by 39.6 percent and 38.9 percent, respectively. Broomfield County reported an increase of 36.7 percent in auction sales, while Pueblo’s auction sales fell only 3.3 percent from 2011 to 2012, comparing the first five months of the year.

 The county with the highest rate of foreclosure sales during May was Mesa County with a rate of 852 households per foreclosure sale. Pueblo County came in second with 1,002 households per foreclosure sale. The lowest rate was found in Boulder County where there were 6,289 households per foreclosure sale.

Have a story idea or real estate news tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee Co. and 8z Real Estate.

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John Rebchook

John Rebchook has more than 30 years of experience in writing and communications. As the Real Estate Editor for the Rocky Mountain News, he wrote about residential and commercial real estate for 26 years. He has won numerous awards for business stories and columns that he wrote, both as an individual and part of teams. In addition to real estate, he also covered economic development, banking and financing, the airlines, and cable TV for the Rocky. In addition, he was one of the original freelance writers for GlobeSt.com, covering commercial real estate for the Internet publication.

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Comments

    • The blog post starts off saying “there are different measures of “shadow” inventory”. I agree with that but I would add… “none of which are remotely reliable”. I think the CoreLogic count is erroneous in two respects. 1. Pending foreclosures and serious delinquencies are just that, they are not shadow inventory. 2. REO property not listed for sale can be fairly described as shadow inventory. But I suspect that the way the data is collected, almost certainly from Assessor/Tax record lists, is seriously flawed. Two examples of how I suspect the data is flawed: Flaw A: My experience is that there are a lot of properties that are incorrectly indexed in the Assessor/Tax records as being owned by Banks, but the properties are really owned by private parties, there are numerous ways this happens, I will not list them. Flaw B: A lot of investors, myself included, purchase properties in Corporate names that have subtle similarites to national mortgage company names, e.g. Franklin Lending, Argent Capital, IndyMac Mortgage. I suspect that the bots that total these numbers don’t realize that these are owned by small investors and used as rentals, thus not really shadow inventory.

  1. Quoting post: …said Ryan McMaken, a spokesman with the Colorado Division of Housing. “On the other hand, filings continue to rise, and since some of those filings will turn into re-possessed homes in the future, we can see that foreclosures haven’t gone away yet.”
    Not sure what point is being made there. I don’t think any sane person believes foreclosures are going to go away completely.

    And I disagree with the May/May increase of 12.8% in new filings. My index shows a less than 3% increase May/May. I suspect they made a mistake somewhere.

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