According to a recent report released by the Colorado Division of Housing foreclosures dropped 24.9% in January, year over year, for the 12 major metro counties. This is the lowest rate of foreclosure activity for any January in the past seven years.
There were 1,456 new foreclosure filings in the 12 metro counties compared to 1939 January 2012. Foreclosure auction sales were down 19.1% from 1,150 to 930.
In Colorado the beginning of the foreclosure process is when the foreclosure attorney representing the lender files a Notice of Election and Demand (NED). This action establishes a foreclosure auction sale date approximately 110 to 120 days out. The foreclosure auction takes place on the county courthouse steps and is when the property is auctioned off to the highest bidder. Typically the lender places a minimum bid they are willing to accept so the majority of the properties go back to the lender at auction.
A year over year comparison of the 12 months ending in January 2013 shows the largest drop in NED filings in Larimer and Boulder counties, while Denver and Douglas counties had the largest reduction in auction sales for the same period.
There has been a lot of speculation and discussion about what the future holds in Colorado and the nation for foreclosure activity and the housing market in general, but at present it would appear we may be on the mend.