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Colorado Springs Home Auctions Slowed but Defaults Rose



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By : Allana Castro    99 or more times read
Colorado Springs home auctions slowed in May, but more foreclosures are expected in the coming months as default rates continued to increase in the area.

Based on records from the public trustee office of El Paso County, new foreclosure filings climbed up slightly in May, affirming earlier contention that the county will still reach the 4,000 to 5,000 total of units entering home auction listings this year.

Similarly, the pace of home auctions in Colorado also slowed down in May. It moved out of the top-ten list of state foreclosure rate and its April tenth-ranking was taken by Maryland, where spikes in foreclosures occurred in May. Colorado moved down by two places to 12th.

A total of 4,843 houses in Colorado entered foreclosure in May, a sharp drop of more than 24 percent from April, when 6,382 homes became distressed, and down by 0.7 percent from the total in May last year. The month-over-month decrease rate was much bigger than the 3.3-percent decrease in filings nationwide.

Officials of the Colorado Division of Housing said that the figures reflect economic improvements in Colorado. Although they use a different methodology to track statewide foreclosures than those used by research firms, the resulting trends are similar.

Despite the slowdown in Colorado Springs home auctions in May, there are indications that auctions will rev up again. The default rate for mortgage loans in the area jumped up to 5 percent in April, up from 3.8 percent in April last year. The foreclosure rate also increased to 1.7 percent, up from 1.5 percent one year earlier.

The default rate statewide also increased to 5.4 percent, up from 3.7 percent in April last year. The foreclosure rate climbed up to 1.8 percent, up from 1.5 percent one year earlier.

Since January last year, the default rate and foreclosure rate in Colorado Springs continued to rise month-over-month. With five percent of all Colorado mortgaged homes in default by more than three months, it is expected that Colorado Springs home auctions will step up in the coming months if distressed homes are not rescued.
Original Post: Colorado Springs Home Auctions Slowed but Defaults Rose on Foreclosure-Auction.net.

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