monthly foreclosure report jan 2014

8/12/2019 Monthly Foreclosure Report Jan 2014

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Monthly Metropolitan Foreclosure Report, January 2014

Colorado Department of Local Affairs Division of Housing

Introduction

The Division of Housing now releases monthly data on foreclosure filings andforeclosure sales in metropolitan counties in Colorado. These reports are a supplement to

the Divisions quarterly statewide foreclosure reports available at the Divisions web site:http://www.divisionofhousing.com .

Foreclosure filings represent the point at which the legal foreclosure process begins. Theforeclosure sale represents the point at which the foreclosure process is completed. Since

not all filed foreclosures proceed all the way through the foreclosure process, the total

number of completed foreclosures in each time period is usually smaller than the total

number.

These numbers represent estimates since each filing does not necessarily represent aunique property, and foreclosure totals also include a small number (less than 3% oftotal) of foreclosed commercial property and vacant land.

The foreclosure sales number approximates the number of unique properties that havebeen foreclosed with ownership reverting to the lender or passing to a third party.

Foreclosure filings are a useful indicator of future foreclosure sales activity and of recent

mortgage delinquency activity.

Findings

During January 2014, foreclosure filings were down, year over year, and foreclosurefilings remained near the all-time recorded low reported in November 2013. Foreclosure

filings inched up from Novembers and Decembers lows. Foreclosure auction sales also

inched up slightly in January, but remained near all-time lows.

January 2014 foreclosure filings were down 34.3 percent from January 2013, dropping

from 1,456 to 957, year over year.

January 2014 foreclosure sales (completed foreclosures) were down compared to January

2013 with a decrease of 37.1 percent, dropping from 930 to 585, year over year.

Filings rose 19.3 percent from December 2013 to January 2014, and auction sales were

up 38.0 percent over the same period.

Mesa County reported the highest foreclosure rate during January, while Broomfield

County reported the lowest rate. (See Table 7.)


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Monthly foreclosure filings and sales at auction totals for metropolitan counties,

January 2007- January 2014.

Note in Graph 1 that August 2008 shows a sizable drop in total filings. This was due to

changes in law that took effect on August 1 of that year. Colorado House Bill 08-1402

required a new notice period of 30 days, and this pushed back the execution offoreclosure filings by 30 days on many properties.

During March and April 2008, totals for foreclosure sales spiked downward. This was

due to a new foreclosure process time line taking effect on January 1 of 2008. The new

time line was structured in such a way that few foreclosures could proceed to sale duringMarch and April 2008. Since 2010, the overall trend in foreclosure sales has been

downward.

Graph 1:

Foreclosures in Colorado metropolitan counties

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Filings Sales


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Moving averages for foreclosure filings and sales at auction for metropolitan

counties, June 2007-January 2014.

An analysis of a six-month moving average for both filings and sales at auction:

Filings peaked in mid 2009 in response to large job losses beginning in late 2008. A

subsequent rise in foreclosure sales at auction peaked in Spring and Summer of 2010 asthe state worked through the large inventory of foreclosures filed in mid 2009.

Foreclosure filings activity declined significantly between January 2011 and July 2011,and began to fall quickly after early 2013. Foreclosure sales activity has been generally

falling since late 2011.

Since 2011, both filings and sales have shown general declines in activity. DuringNovember 2013, the moving averages in both foreclosures sales and foreclosure filings

were at the lowest level yet recorded.

Graph 2:

Foreclosures: 6-month moving average

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Sales Filings


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Comparison tables:

Month-over-month comparisons (December 2013 to January 2014):

Table 1: Foreclosure filings

County December January

Pct Changefrom previousmonth

Adams 127 114 -10.2

Arapahoe 80 117 46.3

Boulder 22 27 22.7

Broomfield 6 9 50.0

Denver 120 87 -27.5

Douglas 51 54 5.9

El Paso 126 201 59.5

Jefferson 73 124 69.9

Larimer 38 40 5.3

Mesa 56 51 -8.9

Pueblo 62 58 -6.5

Weld 41 75 82.9

Total 802 957 19.3

Table 2: Foreclosure sales

County December January

Pct Changefrom previous

monthAdams 75 68 -9.3

Arapahoe 64 76 18.8

Boulder 15 18 20.0

Broomfield 1 2 100.0

Denver 62 53 -14.5

Douglas 8 25 212.5

El Paso 62 110 77.4

Jefferson 38 63 65.8

Larimer 20 24 20.0

Mesa 29 59 103.4

Pueblo 27 52 92.6

Weld 23 35 52.2Total 424 585 38.0


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Year-over-year comparisons of January foreclosure activity:

Table 3: Foreclosure filings

CountyJanuary2013

January2014

Year-over-yearpercentchange

Adams 173 114 -34.1

Arapahoe 223 117 -47.5

Boulder 41 27 -34.1

Broomfield 23 9 -60.9

Denver 204 87 -57.4

Douglas 65 54 -16.9

El Paso 214 201 -6.1

Jefferson 186 124 -33.3

Larimer 69 40 -42.0

Mesa 60 51 -15.0

Pueblo 68 58 -14.7

Weld 130 75 -42.3

Total 1456 957 -34.3

Table 4: Foreclosure sales

CountyJanuary2013

January2014

Year-over-year

percentchange

Adams 128 68 -46.9

Arapahoe 145 76 -47.6

Boulder 30 18 -40.0

Broomfield 11 2 -81.8

Denver 72 53 -26.4

Douglas 60 25 -58.3

El Paso 175 110 -37.1

Jefferson 77 63 -18.2

Larimer 54 24 -55.6

Mesa 50 59 18.0

Pueblo 60 52 -13.3Weld 68 35 -48.5

Total 930 585 -37.1


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Foreclosure sales (completed foreclosure) rates in each county:

January 2014 rates, on the right, are compared with January 2014 rates on the left. In all

counties, foreclosure rates declined from 2013 to 2014. (An increase in the number of

households per foreclosure means a decline in the foreclosure rate.)

Table 7:

County January

No. ofhouseholds percompletedforeclosure,2012 January

No. ofhouseholds percompletedforeclosure,2013

Adams 128 1,250 68 2,354

Arapahoe 145 1,607 76 3,065

Boulder 30 4,109 18 6,849

Broomfield 11 2,032 2 11,176

Denver 72 3,869 53 5,256

Douglas 60 1,776 25 4,262

El Paso 175 1,401 110 2,229

Jefferson 77 2,899 63 3,543

Larimer 54 2,311 24 5,199

Mesa 50 1,168 59 989

Pueblo 60 1,061 52 1,225

Weld 68 1,372 35 2,665

Metro total 930 1,863 585 2,961

For January 2013, the highest foreclosure rate was found in Mesa County, and the lowestrate was found in Broomfield County.


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Appendix: Additional Analysis

Graph 3:

Year-over-year change in monthly foreclosuretotals

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Sales

Filings

Both foreclosure filings and foreclosure sales showed solid declines, year over year,

during January with filings dropping 34.3 percent and foreclosure auction sales dropping37.1 percent.


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Graph 4:

Appendix: Seasonal Factors

Historically and on a nationwide basis, foreclosure filings have tended to peak late in the

first quarter and early in the second quarter. This may be due to the fact that householdsoften tend to default on mortgages during and immediately after the holiday season in

December. This is followed by an increased number of foreclosure filings three to fourmonths later.

Although we only have seven years of monthly data to work with, we do find the highestaverage for foreclosure filings occur during March and April, with December also

showing a high average.

Foreclosure sales, on the other hand, tend to peak in both January-February and duringsummer and early autumn. The increases found during January and February are likely

due to increases in the speed with which foreclosures are processed following the holidayseason. Traditionally, some loan servicers have held off pushing loans to the final stageof foreclosure until after the holidays. The increases in sales found during the summer

and early autumn months likely reflect the increased number of filings that occur during

March and April. As these filings move through the system, they show up as sales atauction several months later.

Avg foreclosure totals by month 2007-2013

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Graph 5:Foreclosure filings by month and year

Foreclosure Filings in Colorado

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Foreclosure filings activity for January 2014 was at the lowest level recorded in anyJanuary since the survey was initiated in 2007. Filings were up from the all-time

recorded low reported during November 2013.

Graph 6: Foreclosure sales at auction by month and year

The auction sales total during January 2014 was at the lowest January total recorded, andwas at a seven-year low for the month.

Foreclosure Auction Sales in Colorado

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monthly foreclosure report jan 2014

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