Foreclosure Activities on a Rise in Larimer County

Posted on September 6th, 2007 by hinson

The foreclosure is increasing at an average rate of 10 percent year after year in the Larimer County. According to the latest statistics obtained from the Colorado division of Housing, Larimer County stands at the ninth position in the foreclosure listings with one in every 143 households facing the consequences of foreclosure activities.

The foreclosure situation taking place nationwide is indeed depressing. The listings for foreclosure increased by 6% from the first quarter to the second one. It is expected that the United States is likely to witness a drastic rise of almost 25 percent. However, the executive director of the Consumer Credit Counseling Service of Southeast Wyoming and Northern Colorado Sara Allen believes that changes will take place but not dramatically.

Speaking to the media, the credit counseling services said that from Oct06- June07 there has been an average rise of 59% in the avoidance of the foreclosure calls. In comparison to the same period last year, the rate of increase is too much. Sara Allen said that a large part of population of Colorado took the adjustable mortgage loans to buy a home that they could not even afford. While others bought it to refinance with the adjustable loans with the idea to pay back their debts.

Allen is of the say that the problem will aggravate in the times to come, which can be attributed to two prime factors. One is the inability of the loan seekers to pay back the ever increasing loan sum and the second is the sluggish real estate market. Some changes have been proposed to help the homeowners cope with the tough situation. The most likely change is that the homeowners will be given an extension in the term of loan payment which is expected to be somewhere between 110-125 days. However, in return the right of the loan seekers to redeem their property after the foreclosure sale will be taken away.

As per the present regulations, the homeowners have the right to redeem their property within 75 days of the conduct of the foreclosure sale. The problem that the homeowners are facing is that they are losing their home also and in return getting an amount lesser than its actual value. This in turn prevents them from making the full payment of the loan and gets rid of it. In fact, as time passes by the amount of loan keeps on increasing, thereby making it all the more cumbersome for the homeowners to make their loan payment.

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