Thu June 16, 2011

Foreclosures Drop in May, Still High in Colorado

Nationally, the number of homeowners falling behind on their mortgages in May was at its lowest level since 2006. But experts say it’s a far cry from a turnaround in the housing market. And despite lower numbers, Colorado is still among the top ten states for foreclosures.

According to foreclosure listing firm RealtyTrac Colorado is tenth in the nation for the number of home owners defaulting on their loans. Nevada, Arizona and California are the top three states.

RealtyTrac’s Rick Sharga says the decline seen last month is largely due to banks holding up the foreclosure process.

“We are seeing massive delays in foreclosure proceedings right now – driven not by an improvement in market conditions but by lingering paperwork issues.” And Sharga says that means a lot of foreclosures are being pushed into next year, making the housing recovery take that much longer.

1 out of every 518 Colorado homes is in some stage of foreclosure. However, the state division of housing said this week that the number of new foreclosure filings has dropped for the sixth straight month in a row. The highest concentrations of foreclosures are along the Front Range in Adams, Arapahoe, Pueblo and Weld counties.