Denver Colorado Real Estate

Denver Real Estate Forclosures

In July of 2006, Denver Colorado’s real estate foreclosure market became front-page news. More than 9,500 foreclosures were filed in Denver in the first 6 months of the year, and this constituted about 34 percent more than that same time period in 2005. Colorado and Denver are experiencing some of the highest foreclosures in the nation.

Many real estate investors consider prevailing low interest rates coupled with high foreclosure rates to be an excellent window of opportunity. But why are there so many in the Denver market? Experts say that the recent past trend of mortgage companies to provide loans to people with mediocre credit scores may have had an impact. Also, those who barely got in to their homes with low adjustable rate mortgages are seeing those rates adjust upward resulting in higher than anticipated monthly expenses. This coupled with a family crisis or a divorce can bode disaster. Many high paying jobs have gone to other locations.

Homes purchased with little or no down payment are leaving homeowners “upside down” when it comes to needing to sell within a few years of purchase, resulting in more circumstances of seller financing.

Most experts are predicting foreclosure rates in Denver will continue to escalate, creating unprecedented investor and first-time homeowner buying opportunities,