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Denver Area Sets Record Foreclosure Pace |
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Written by Administrator
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Wednesday, 12 July 2006 |
In the Denver area, more than 9,500 real estate foreclosures have been filed in the first half of the year, about 34% more than in the first six months of 2005.
Topping 17,122 in 1988, it's on pace to be the worst year ever in terms of the number of foreclosures, though the area's population growth since then means the total percentage of homes in foreclosure is smaller.
Experts are concerned about the number of people in danger of losing their homes because of the impact on a local economy that is otherwise showing strength by most measures. Peter Lansing, president of Universal Lending, who served on a foreclosure task force during the late 1980s said he believes there is a crisis.
Experts said foreclosures are being driven by several factors: adjustable rate mortgages that are rising with interest rates; interest-only loans. Houses sold to people with less than stellar credit ratings who in previous years would not have qualified for loans; programs allowing homes to be purchased with no down payment; overbuilding; the lack of new, high-paying jobs; and predatory lending and fraud. Everything is strong except for the rising foreclosures.
Real estate broker David Binkowski, owner of Real Estate of the Rockies in Denver, said most of the foreclosures he sees are in homes priced below the $300,000s and the owners often have refinanced out all of their equity.
Kevin Marchman, executive director of the National Organization of African Americans in Housing, and the former head of the Denver Housing Authority, noted that a number of national reports have said Colorado and Denver have the highest rate of foreclosures in the nation.
By M. Sese
http://realestatepress.org |
