Colorado Shows First Signs of a Downward Trend.(Managing REO)

Byline: Jennifer Harmon

According to the RealtyTrac U.S. Foreclosure Market Report for August, the nation's foreclosure activity rose almost 12% from July and 27% from August 2007.

One in every 416 U.S. households received a foreclosure filing during the month. With one in every 452 households receiving a foreclosure filing in August, Colorado's foreclosure rate was slightly below the national average but continued to rank among the 10 highest state foreclosure rates. Colorado foreclosure activity in August was down nearly 14% from July and nearly 30% from August 2007.

"Colorado was on the front edge of the national surge in foreclosure activity that we've seen over the past two years, and it also appears to be one of the first states to show a consistent downward trend in foreclosure activity," said Rick Sharga, senior vice president at RealtyTrac, an online marketplace for foreclosure properties. "Our numbers show a peak in Colorado foreclosure activity in January with a fairly steady downward trend since then - some of which could be attributable to an extension of the state's foreclosure process."

Mr. Sharga was a featured speaker during the recent Colorado Association of Mortgage Brokers Convention & Expo at the Marriott Denver Tech Center. His educational breakout session titled "Foreclosures in Colorado" focused on the past, present and future of the foreclosure phenomenon that has a stranglehold on the national economy. He discussed recent federal legislation and the impact such actions are likely have on foreclosure activity in the foreseeable future.

"The nation's economy is dependent on the real estate market to bottom out and turn the corner before any true healing from the mortgage crisis can begin in earnest," said Mr. Sharga. "The federal government is attempting to legislate the economy back to health. However, with the labor market continuing to shed jobs, more citizens filing for bankruptcy protection, and the foreclosure floodgates wide open, legislation alone is not enough. Investors and ordinary citizens need to feel confident of their own financial stability. Until that confidence returns to the marketplace, foreclosures will continue to delay any real economic recovery."

The RealtyTrac report shows foreclosure filings, including default notices, auction sale notices and bank repossessions, were reported on 303,879 U.S. properties during August.