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Processing delays fuel 18 percent drop in Springs foreclosures for Q1

Thu, Apr 14, 2011

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There were 1,652 foreclosures in Colorado Springs in the first quarter of 2011, according to a report released today by RealtyTrac.

That’s a drop of nearly 18 percent year over year, and a drop of 16.7 percent from the fourth quarter of 2010. Colorado Springs ranked as the 49th worst out of the 211 metro areas tracked by the agency, with one foreclosure filing for every 157 households.

While the large percentage drop in foreclosure filings is good news, many believe this to be a temporary phenomenon.

“The nation’s housing market continued to languish in the first quarter, even as foreclosure activity fell to a three year low,” said James Saccacio, chief executive officer of RealtyTrac. “Weak demand, declining home prices and the lack of credit availability are weighing heavily on the market, which is still facing the dual threat of a looming shadow inventory of distressed properties and the probability that foreclosure activity will begin to increase again as lenders and servicers gradually work their way through the backlog of thousands of foreclosures that have been delayed due to improperly processed paperwork.”

In an article appearing in tomorrow’s Business Journal, El Paso County Public Trustee Tom Mowle seconded this outlook.

“We’ve so far trended lower than I expected, but filings will pick up in the latter part of the year,” he said.

Colorado ranked as the ninth worst state with 13,847 foreclosure filings in the first quarter. That’s a drop of 13.6 percent year-over-year, but an increase of 11.9 percent from the fourth quarter of 2010.

See the full report here. 

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