We sure have been here before (as in when I last lived in Colorado in 1990). Foreclosures everywhere, a real estate industry in the toilet, condos for pennies on the dollar, financial devastation everywhere you looked. Welcome back to the future, Colorado housing crash 2006 style.
Colorado on Wednesday launched the nation's first statewide foreclosure hotline, which came out on the same day a national study said the state continues to be plagued by the highest foreclosure rate in the country.
The hotline, 1-877-601-HOPE, is expected to help at least an estimated 40,000 homeowners in some stage of foreclosure in Colorado, said Zach Urban, program manager for Denver-based Brothers Redevelopment, which has been hired by the Division of Housing to administer the program.
The Division of Housing contributed $250,000 to kick off the hotline. Also, the attorney general's office is going to contribute money it receives from lender Ameriquest as part of a $295 million national settlement involving predatory lending practices. The Colorado Association of Realtors is contributing $30,000, and JPMorgan Chase is kicking in $12,500, Williams said.
The $500,000 cost may seem like a large amount but could stem the tide on a problem whose impact goes beyond the 14,205 foreclosures reported through September, a 32.3 percent increase from 2005, according to the Division of Housing.
"We're trying to stop the bleeding," Williams said.
She said a lack of price appreciation in homes, risky creative financing such as adjustable rate mortgages and interest-only loans, slower economic growth during the past few years, predatory lending practices, and scams are contributing to rising foreclosures.
October 12, 2006
Deja vu all over again - 40,000 homes in some state of foreclosure in Colorado and a devastating housing crash. Bring back the RTC?
Subscribe to:
Post Comments (Atom)
25 comments:
I guess they are bringing in rehabbers to winterize the houses before ole Jack Frost hits ....
Real estate only goes up. Suzanne researched it!
Why is the market in Colorado seemingly worse than the one in Arizona?
I keep waiting for foreclosures to show up in the East Valley (Scottsdale in particular) to no avail. Any thoughts on this, Keith?
I think Susan Ryan needs to write a fluff piece to put a good spin on this Colorado freefall. Ever notice when you read something from Susan Ryan you can smell the cheap perfume comming through the screen ?
Colorado was the original housing bubble state - having their crazy rise in 2000 - 2002. What's happening there will happen to Arizona and the other bubble markets, but Colorado goes first.
Also, Colorado had an out of control, unregulated mortgage broker business putting financial idiots in "exotic" loans. Same thing now in Cali, AZ, DC, etc, but again Colorado led the way
I've seen a real estate crash in Colorado and it can get really ugly there
Again.
I used to write loans for an "investor" that was out of some place there, I can't remember the city, but he said all the good flips were drying up out in his area about two years ago. I guess the people at the bottom of the pyramid are now singing the blues.
"We're trying to stop the bleeding," Williams said.
You need a trillion dollar band aid for this harpooning! What is the point of this PR nonsense? I have watched this problem develop for years behind sub prime lending, the house ATM, and government debt promotion. This whole mess looks orchestrated to me; otherwise my government is incompetent, corrupt, or lazy. I don’t think they are, I have to assume that this is a game plan from a play book. If it is, the outcome is predictable. Millions of people will be separated form their wealth while they sleep. The only obvious motive I see is to keep the work force from retiring and perpetuate the welfare state by forcing people to continue to work, consume, and pay taxes.
Woooh now, you don't think the gevernment is incompetent... or corrupt?????? Do you live in the United States?
"lack of price appreciation in homes" is fueling the rise in foreclosures.
I don't even know where to start. I guess everything you own that loses value is a one-way trip to bankruptcy now?
The "value" of your home is in its value as a stable place to live. It's "value" should have nothing to do with it's affordability because you should have a fixed payment mortgage to insulate you from fluctuations. Sheer lunacy.
I have to say i thought this phone # was B.S. I called it and it is REAL. Wow. I don't know what to say. It's alittle scary....
are there any good foreclosure website out there to watch?
RE: Why does CO have so many foreclosures.
Certainly, we didn't get the price appreciation that other states did( I moved here in Jan 2004 from LA, bought a house and similar houses now sell for 7 to 10% less than what I paid).
According to the local rags,despite this lack of price appreciation people here, just like in other states, still treated their houses like an ATM, money keg, to tap into for some non-existent equity. So, of the people in trouble, fewer of them
in CO had substantial recent equity buildups. So, when trouble hits and they find that the house is worth less than what they owe, they find it easier to walk away and let it foreclose.
I don't buy that theory myself. CO does allow for deficiency judgments so you can still get sued for the balance so walking away is not any cheaper. I think its because we have a "power of sale" clause in the deed of trust, so there a non-judicial, i.e.
faster and cheaper process for foreclosing than in other states. At least that's what the hobos on 16th Street Mall in Denver told me when I stopped to watch their games of chess.. When I asked how they knew so much.. it was the usual sorry tale of their good old days as a realtor once upon a time on a planet far far away.
The question is if you can make money in a up market and a down market. If you're an investor worth your salt you know this already. Remember, you make your money when you buy...not when you sell. Thanks Rich Dad!
Colorado is just a bit ahead of Calif. and Az. I can see the vacant housing numbers and foreclosures rising there soon! The spending on big ticket items has definitely slowed way down. All the stores and waitresses are complaining.
As in the word of Monty Python "(hp says) Bring out your dead------"bong"----bring out your dead------"bong"--" (the bank says)here I got one for ya", (home owner says)but I'm not dead yet ((arm kicks in)bank hits the home with the adjustment)---BONK!-- here you go, I'd say hes ready now. Another home placed on the heap of ARM death.
Rocky Mountain High.
I have relatives out there. At a big reception event a couple of years ago, all anyone talked about was money. I also lived in Boulder back in the go-go 80's. Not quite as money-obsessed back then, but The Church of the Almighty Dollar has something to do with why CO is now in deep. Americans in general love the rat race, but the money-grubbing talk was gauche, even by our standards.
Boy those realtors are really giving back to the community. 30k after sucking out millions.
Two things are at work in Colorado. On the Eastern slope refugees from the Golden State are turning cities like Denver and Boulder into a miniature versions of LA. They have clueless, effite, liberal, snobs mandating all manner of expensive social programs, sanctuary city status, and trying (LOL!) to save the prairie dogs. They have bid-up RE prices and don't see the folly of 15% growth rates in an area with limited fresh water.
On the western slope, the politics aren't as insane, but money from oil and gas companies is fueling an unprecedented housing boom. Young guys in their 20s and 30s are buying 1500 SF, $400K houses because they're earning $80K a year and need the tax write-off. On top of that add in the federal money for the Energy Corridors nonsense and you are seeing what happens when a billion dollars a year of funny money gets dumped into what is essentially a rural/ranching area.
Is any of it sustainable?
Rich Dad
“You make money when you buy” is doublespeak.
Let’s try reality….
A good buy is more likely to make money than a bad one.
You make money when you sell for a profit.
Past performance is no guarantee of future returns.
Far (closure) Out!
Signed,
John Denver
Where's Osman?
Let's see, we have right wingers blaming CO's housing bust on the welfare state and a prarie dog rescue effort. Can you guys get any kookier? Let's see if you can drag that old standby, Clinton's penis, into it somehow..
You don't rescue prairie dogs, you hit'em with a 22-250, and smile as the greasy cloud drifts away. They are worse than rats, and the people who waste our time trying to save them should be sterilized.
http://www.briansproperties.com/Green mountain falls colorado luxury homes for sale I was looking to buy land in colorado as an investment and after finding and calling so many realtors that never returned my calls i finally found Brian. He is great at what he does and i thought i would post and let other people know about his site if they were having the same toubles as i was.Green mountain falls colorado luxury homes for sale
Post a Comment