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Denver Forclusures Surge For October
A national report announced last Wednesday, foreclosures in Colorado and in Denver area increase rapidly in the month of October. Foreclosures in Colorado jumped 63.73% last month, while nationally U.S. foreclosures fell by 8.38%, according to analysis by ATTOM Data Solutions. (ATTOM is the new parent of RealtyTrac)
Colorado foreclosures rose by 1301.7 on a month-to-month basis, while there was a 27.13% surge from the month of September nationally. An even greater surge in foreclosure activity was witnessed by Denver-Aurora-Lakewood metropolitan area, according to ATTOM. The metro area overall saw a 121.18%, year-over-year growth at a 150.67% rise on a month-to-month basis. Among all states Denver had the largest percentage gain. From October 2015 the foreclosures in the Denver-area skyrocketed by 375.47% up to 270.59%.
(Daren Blomquist, senior vice president at ATTOM Data Solutions)
While the percentage has a massive increase, the figures of foreclosures are small. Only 1,502 foreclosures in the state were recorded, with half of them in the Denver area. Particular that the Denver area has had one of the strongest housing markets in the U.S., it is surprising that foreclosures spiked last month, noted by Daren Blomquist.
“It comes as a bit of a surprise, as Denver foreclosures have very consistently gone down,” as homes prices have risen, according Blomquist.
According to him part of foreclosure outpouring may have been in line to a lawsuit by the Colorado Attorney General that directed big law firms for their billing practices. Several of those foreclosed properties may have been in midpoint throughout the litigation and are now only hitting the market, he said.
“Those foreclosure law firms had a large volume of foreclosures and we know there was a hit in foreclosure activity when they were sued,” Blomquist said.
“You have 1,500 foreclosure filings, which is the highest since January 2015, It is not all of a sudden like you are in a sky-is-falling scenario,” Blomquist said.
Actually, it is promising that October is a mere glitch, and not a trend, he said. That doesn’t mean that there won’t be a few more months of out-sized percentage increases in foreclosure activity.
“Even in the best of times, there is risk in originating loans, and for one reason or another, there are always cases where borrower can’t make payments,” and may not be able to sell the home for a revenue, he said.
Furthermore, more than 50% of the homes in foreclosure were finished after 2009, which means some debtors may have over-paid for their homes and can’t sell them for more than the mortgage amount, he noted. However, there may be a bit of a bright side to the unpredicted growth in foreclosures.
“The homes will provide an opportunity to buy homes in a market that has been very tight,” he said.
In history, many foreclosed homes have been lower priced, which is a sector of the Denver-area market that has an extreme shortage. Nationwide, there were 105,481 properties in some stage of foreclosure in October, according to ATTOM.
Month of October was marked the 13th consecutive month where U.S. foreclosure activity lessened on a year-over-year basis, but the month-over-month increase in October. Still, last month’s activity, across the nation, shown the biggest month-to-month gain since August 2007.
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Kevin Fletcher and is a Denver native working with Exit Realty of Cherry Creek. Kevin specializes in helping Buyers, Sellers and Investors with real estate transactions in the Denver Metro Area. Within Denver, I have intimate knowledge of the Park Hill, Stapleton, City Park, and Baker Neighborhoods. Kevin Fletcher can also assist buyers looking for Fix and Flips, and rental properties. I can help with securing financing, investment analysis, rehab, and property management.To get an expert opinion on what your home is worth, or for a Buyer consultation, Call/Text or Email Kevin Fletcher at 303-818-4130, Kevin@exitrealtycherrycreek.com
My name is Kevin Fletcher and I am a Denver native working with Exit Realty of Cherry Creek. I specialize in helping buyers, sellers and investors with real estate transactions in the Denver Metro Are....