FORECLOSURES UP
IN SOUTHWEST COLORADO

ACCORDING to a recent Colorado Division of Housing report, although completed foreclosures fell somewhat statewide, the story is quite different in southwest Colorado. Among metropolitan counties, Mesa County reported the largest increase with completed foreclosures growing 223 percent year-over-year to a total of 359.

The report noted that while foreclosures were limited to Colorado's Front Range in earlier years, Colorado's smaller and more rural counties have become increasingly affected by foreclosures. Teller, Park, Morgan, and Fremont Counties all reported increases of 30 percent or more in completed foreclosures.

On the Western Slope, completed foreclosure totals in Mesa County and nearby counties such as Delta, Montrose, Ouray, San Miguel, and other counties have all increased since 2008.

"These changes in the geography of foreclosures shows that the problem has moved beyond overbuilding and adjustable rate mortgages," said Stephanie Riggi, manager of the Colorado Foreclosure Hotline call center. "We're seeing unemployment and falling wages as much more of a driving factor behind foreclosures, and it's not just the Front Range that's affected."

Completed foreclosures are opened foreclosures that have proceeded to foreclosure sale at auction. Filings denote the beginning of the foreclosure process, and once a foreclosure is filed, the borrower has approximately four months to work with the lender to avoid a completed foreclosure

It is during this period that borrowers work with lenders and housing counselors to work out loan modifications, short sales, or other ways of curing the foreclosure. According to the report, since the second quarter of 2009, the number of foreclosures cured in Colorado has increased 50 percent.

The full report is available on the Division of Housing blog: http://divisionofhousing.blogspot.com

Unfortunately, despite government mandates to help people keep their homes, larger lending institutions have been unwilling, and smaller ones unable, to help borrowers and prevent foreclosures - resulting in a “glut” of unoccupied homes and subsequent lowering of home values county-wide. The “news” is confusing at best, and for the most part, downright misleading. In many of these small rural areas, the economy continues to slow, causing higher unemployment and foretelling a continuing increase in forecloses, much like what was seen in larger metropolitan areas late last year. Moreover, many of these scenic areas have no economic diversity and little or no industry, other than tourism, to support them. Second- and third-homeowners, a small part of that base, are walking away from their homes. Unless and until we can figure out a way to profit from “pie in the sky” as we did and do during boom times—these areas are infamous for boom and bust economies—or local business and government leaders come up with some innovative ways to solve the problem, southwest Colorado is in trouble.

Resources
Colorado Department of Local Affairs
...financial and technical assistance, emergency management services, property tax administration and programs addressing affordable housing and homelessness...

Making Homes Affordable - Homeowners HOPE Hotline. 888-995-HOPE
While this can be helpful, it is hard to qualify and harder still to get a lender to actually complete the process. Even so, this is a good place to start if you are in trouble.
You will also find how to avoid "Foreclosure Scams." Remember, help should be FREE. You should never have to pay a fee for counseling on how to save your home.

Mortgage Modification: Revamping HAMP
CBS Money Watch: The government’s loan modification process (Home Affordability Modification Program or “HAMP“) is an abject failure in its current form. ..."banks have been reluctant to write down loans because of the balance sheet impact. This “pray and delay” or “extend and pretend” strategy can only work if the economy and house prices recover quickly. Anyone think that’s happening?"



HFA Updates GSEs' Foreclosure Prevention Effort
Fannie Mae and Freddie Mac initiated more than 485,000 mortgage loan modifications through December 2009, under the Obama administration's Home Affordable Modification Program (HAMP), according to the companies' conservator, the Federal Housing Finance Agency (FHFA). This site offers links to a number if re-financing opportunities.


FEDERAL HOUSING FINANCE AGENCY - HAMP Statistics, FHA.

Compare FHA Loan Rates
While you are hunting for a new loan or a refi, here are the current posted FHA rates. Compare FHA Loan Rates
5/1 ARM from 3.750% (3.067 APR)
15-year fixed from 4.250% (4.385 APR)
30-year fixed from 4.750% (5.004 APR)
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