Metro Denver Foreclosures Up Over 2006

Today’s Rocky Mountain News reported that Colorado’s foreclosure rate will exceed last year’s record number by a whopping 25%. Still, there is much misconception about the REOs, HUD properties and pre-foreclosure inventory. This year’s anticipated 36,000 foreclosed on mortgages are not necessarily where many buyers want to live. 

Many of TeamCox’s relocating buyers have heard about the high number of foreclosed homes and want a piece of this perceived "buyer’s paradise.” During our initial counseling session, buyers often tell us that great schools are absolutely essential. The problem is that the majority of the foreclosed homes are not in these ideal locations that include the schools in Cherry Creek, Douglas County, Littleton and Jefferson counties. Adams, Weld and Denver counties lead the pack in foreclosures, which often dissuades many of the buyers. 

It has always baffled me why foreclosed on homeowners find it necessary to destroy a home on the way out. Buyers often tell us they are pretty handy and that they can do work on these homes. However, when we start showing them the available properties that meet their criteria, they are often shocked by their condition. Usually, these homes are not for the faint-hearted since they often require a lot of fix up just to move in. 

When the occasional buyer does make an offer, they are surprised at just how hard-lined the bank can be since they are not going to get 5 – 10% off their asking price. Then, the buyers begin to understand what we have been telling them. Banks aren’t selling the foreclosed homes at huge discounts like they were during the last downturn in the late 1980s.

What is often lost is that banks are publicly held corporations with stockholders and boards of directors. They know what they have to sell a home for and they will pretty well stick with that number unless the home has been in inventory for a very long time.  This is good not only for the neighborhoods that are impacted but for the county tax collector’s office as well. 

If you are still interested in knowing about Denver foreclosed homes or any other segment of the Denver metro real estate market, please call or email a TeamCox member.  It will be our pleasure to answer any of your questions.