Foreclosure sales are waning in metros. A 7.5% fall in the filings of foreclosures have been noted in the past three months in the seven county Denver areas where it was 7565 in the first quarter and 6922 filings in the second quarter. However a half yearly statement of 2008 compared to last year during the same period, shows a rise of 15.6% in foreclosure filings. Public trustee offices in Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson counties declare that foreclosures remain at a recorded high as the figures of the first six months of 2007 put at 12,626 are comparatively studied with that of 2008 at 14,600 while in 2007 foreclosure filings were 25% more than it was during the same period in 2006.The experts nevertheless foresee a slackening of the pace of foreclosures in the country.
There is a widespread air of optimism in the counties. Individual statistics account for such optimism. Adams County, for the first half year of 2007 saw a rise of 48% over 2006 while in 2008 foreclosure filings were up by only 12% over that of 2007. Jefferson County registered 35 cases of foreclosures, a rise of only 3.5% in the second quarter of this year. It is expected then, that the foreclosure dragon, responsible for rendering thousands homeless, was at last withdrawing its fangs. It was now a matter of six to eight months before one can heave a sigh of relief.
Various reasons have been forwarded by Jalowsky to account for the downward curve of foreclosure in recent times. Firstly, borrowers in default are approaching lenders in the initial stage of foreclosure, secondly, and lenders are willing to make concessions to such borrowers in the form of charging lower rates of interest and in some cases even the amount of principal owed is modified. Thirdly, a term known as short sales is being applied where, the lenders are quite eager to accept less than the amount the borrower has mortgaged. Zachary Urban, who handles Colorado Foreclosure Hotline feel that the fall in number of filings could be an outcome of a state law that had come into force since January 2008, and is in the interest of the borrower. He is now allowed more time to make up for the lag in payments before the process of foreclosure is initiated.
Socio-scientists and market observers are prepared to announce the tempering nature of foreclosure sales, no matter what the reasons are.
