No Mercy for Homeowners in Colorado Springs

Colorado has moved from being the number one state in tourism in the US to being the number one in bank foreclosures. Due to the reset of interest rates in the recent past, homeowners are faced with a higher monthly mortgage payment, which many have missed in 2007. Missing a mortgage payment is suicidal for any homeowner as catching up later-on becomes and impossibility. The end result is homes in foreclosure as the lender wastes no time in filing a notice of default. This is exactly what has been happening in Colorado in the last couple of years and people from the industry feel that it will continue through 2008.

Colorado Springs, CO

The high number of Colorado Springs foreclosure homes only indicates that the worst case scenario is yet to happen and that homeowners should start working with the lenders to find a better option. The repository of Colorado Springs bank foreclosures is being bombarded with new foreclosure homes each year and the problem is that there are more homes and less takers. One of the major contributors is El Paso County, which recorded a high in 2007. The last time it recorded a high foreclosure rate was way back in the 1980’s. This also shows that it is becoming increasingly difficult for homeowners to avoid defaulting on their loans.

In the first quarter of 2007, the rate of Colorado bank foreclosures was one per 494 households while the national average was one per 1,268 homes. The rate of Colorado foreclosure homes did see a 31% drop in March 2007 but by then there were as many as 5,392 homes already up for auction. Homeowners in the state of Colorado are keeping their fingers crossed as far as foreclosure filings in 2008 is concerned.

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