The Colorado Springs Real Estate Market has had 2,531 foreclosures since 1/1/2008.
These numbers are higher than we have ever seen. Since 1981, the highest annual foreclosure rate was in 1988 with 3,476 foreclosures. Here is a snapshot of the foreclosure rate in the Colorado Springs area since 1981:
( source )
In 2008, we have been seeing an average of 422 new foreclosures started every month.
This means that by the end of the year, we will see a total of 5,064 foreclosures in the Colorado Springs real estate market.
This is almost 10x what it was in 1996. Unbelievable.
The sad thing about these statistics is that MANY of these homes did not need to foreclose.
Psychologically, once a homeowner realizes that they can no longer afford to make their monthly payments, they just ride out the months until the home sells at the foreclosure acuction. Sadly, most of these folks are facing foreclosure because of a mortgage rate increase or something traumatic happening to their life (divorce, illness, death, job loss, etc.) and cannot afford to refinanace. Chances are that even if they COULD afford to refinance, their home has not gained enough equity to let that happen anyway.
However, these distressed Colorado Springs homeowners are not alone. One in four people in Colorado Springs are in some state of financial distress with their mortgage. Yes, some may only be a month or 2 behind and are not facing imminent foreclosure yet, but there are A LOT of people in the same boat. This means that if you look down the street in your Colorado Springs neighborhood, about every 4th home will be in some stage of foreclosure - or close to it.
Foreclosure does not ALWAYS need to happen. If a homeowner knows that they will not be able to keep making their monthly payments, there is always the option to sell their Colorado Springs home before it forecloses. This will save, not only some of their credit, but also their peace of mind. Even if a homeowner owes more than they could sell their home for (which is true for a lot of Colorado Springs homeowners out there right now), you could STILL possibly sell your home and get out from under foreclosure.
If you (or someone that you know and love) is distraught becasue they are losing their home to foreclosure, a Colorado Springs Real Estate Agent may be able to help them SELL it before it is too late. You and your agent can work together to chop these high foreclosure rates down ... and help people get out from under their mortgage burden in the process.
Derek and Mariana Wagner of the Colorado Springs Real Estate Connection and Wagner iTeam are currently in the process of becoming Certified Distressed Property Experts and can effectively negotate with your banks to get your home SOLD, regardless of what you owe them ... helping YOU get on with LIFE. Call us as soon as you can. The more time we have to help you avoid foreclosure, the better: (719) 434-7525
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Clients Choice Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
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Advocates for Consumer Empowerment in Real Estate. Real Estate Brokers for Colorado Springs & Monument, Colorado. We love where we live & we love what we do. ColoradoSpringsRealEstateConnection.com
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Mariana - well the picture there is not unlike many areas here. I was very interested to hear about you and Derek pursuing the CDPE certification. Have heard alot about this just recently and we are looking forward to a Southern California area class possibly nesxt month as they break into our market. It is sadly needed, IMO. Keep us posted. Would be interested to hear what you think as the feedback I have seen is VERY positive (check out the recent post from Marlene Bridges here in CA).
Jeff
Those numbers are very high and unfortunately many homeowners are not aware of their options or they just ignore the problem all together. I imagine more and more agents will obtain the certification over time as so many foreclosures have saturated the market,.
Jeff - So far, the classes have been escellent. I will keep you posted.
Patricia- Sadly, this is not one of those "ignore it and it will go away" kind of problems...
Mariana, in La. we have not seen the foreclosure rate that the rest of the country has seen. Sorry to see this in your home state but you do give excellent advise.
great article and good advice. the best tip we have for our clients is to talk directly to lenders and banks and not hiring any third
party companies. direct negotiation can work wonders.
http://foreclosure-houses.submit-articles.biz/
Regarding 3rd Parties to help negotiate short sales: (comment since disappeared)
I have YET To see a homeowner know exactly what to say and do with their banks to get a short sale approved. My job as a real estate agent is to look out for my clients' best interests and get the banks to understand my client's situation and approve a sale that will avoid foreclosure.
It is not my clients' job to figure all of this out on their own.
Hi Mariana, we have been pretty fortunate in the Birmingham area in regard to foreclosures. There are certainly many more of them, but our market just has not suffered to the extent of yours and so many other areas. I am interested in the CDPE certification, do you recommend a source to find out more about it?
Have a great day!
Ann - The odd thing is that regardless of the high foreclosures, our sales prices and days on market are quite healthy. Here is the link for the CDPE training: http://www.cdpenow.com/
I see sales prices holding at the avg. norm that we saw this time last year. Days are the market are also healthy in my area as well.