County's foreclosure sales flatten while filings rise

By Dan MacArthur
North Forty News

Completed home foreclosure sales in Larimer County declined slightly as 2009 drew to a close, despite a dramatic increase in the number of foreclosure filings.

According to statistics provided by the Colorado Department of Local Affairs Division of Housing, foreclosure sales in the county totaled 727 through November 2009. That represents a 4 percent decrease from the 759 during the same period in 2008.

At the same time, the number of foreclosure filings increased 30 percent to 1,947 through November 2009 compared with 1,493 in 2008.

Among the state's dozen most populous counties, foreclosure filings increased 12 percent with 36,628 filings through November 2009 from the 32,774 filings during the same period in 2008. But completed foreclosures fell 13 percent to 14,975 compared to 17,160 in 2008. The completed foreclosure figure reflects that fewer properties are proceeding to sale as mortgages are "cured."

Recent increased foreclosure activity was expected, according to Ryan McMaken, a spokesman for the Division of Housing. Many lenders and investors had enacted both formal and informal moratoriums on foreclosures, which slowed the foreclosure process for many, he stated in a news release. The number of new foreclosures increased as those moratoriums were phased out, resulting in the growth of foreclosure filings.

Due to the moratoriums and the changes in law, foreclosure totals dipped quite a bit at various times during 2008 and early 2009, McMaken stated. "We seem to have worked through much of that now and the trend points toward a situation in which foreclosures are not increasing rapidly, but they're not going away either."

At this point, it appears very unlikely that the number of completed foreclosure filings will reach the totals set in 2007 and 2008, according to McMaken, "November was a relatively light month for foreclosures, but with the new foreclosure filings still up compared to last year, foreclosures will continue to be a challenge."

"The fact that completed foreclosures have been flat or falling as new foreclosures have risen is certainly a credit to our housing counselors," according to Stephanie Riggi, manager of the Colorado Foreclosure Hotline's call center. "Plenty of new people are entering the foreclosure process, but fortunately, many of them are finding help with housing counselors and by using strategies such as loan modifications that don't lead to a full foreclosure."

Riggi noted that calls to the hotline (877-601-HOPE) have increased. The hotline has received more than 3,000 calls each month since August.