What the heck is going on in Colorado that makes it the national leader in foreclosures? Are the lenders out there even more evil than other states? Os - enlighten us here... I guess the good news for me personally is I intend to move back to Colorado one day - and looks like I'll have my choice of dirt-cheap houses to buy...
Remember, that once these evil mortgage brokers get the sucker, I mean the buyer, into the loan, they get rid of the hot potato - and Fannie or Freddie and then the Chinese hold the bag... These bad loans are going to hurt someone besides the bankrupt buyer in the end - and I think it's the foreigners holding the bad debt.
From a KRDO in Colorado Springs report:
Colorado reports the highest rate of home foreclosures in the United States for the second month in a row.
Colorado is one only a few states in the country with an unregulated mortgage industry. Consumer advocates say some lenders take advantage of their loose leash. Critics say lenders in the state don't fully educate their buyers. And worse yet, FBI statistics put Colorado in the top ten states for mortgage fraud each of the last three years.
Many buyers are apparently talked into using loans that aren't right for them. For example most buyers shouldn't be setting up interest only loans that will increase to include principal payments after just a few years.
For most buyers, once they start paying the principal their payments go up substantially, forcing foreclosure.In Colorado the responsibility to avoid these problems is with the consumer. The Better Business Bureau recommends calling them before deciding on a lender.
May 28, 2006
Posted by blogger at 5/28/2006