La Plata Home Foreclosures

Posted on December 25th, 2007 by saman

La Plata County has experienced the highest home foreclosures since 2000. The amazing fact is that home foreclosure has risen nearly 50% since 2006.

In 2000, 77 homeowners filed for foreclosure and there have been 74 home foreclosures filed in 2007 till. The numbers of foreclosures this year have increased as compared to the year 2006. Only 50 foreclosures were recorded in the year 2006 in the county which was the lowest in the last ten years.

Ed Murray who is the county treasurer says that there may be several reasons for the filed foreclosures but he is not sure of it. He says that the reasons can be failure to pay back loans and also marital problems. He also said that the rates of foreclosures were much higher in the year 1980. But since November lesser people are filing for the foreclosure.In November 2006, 8 home foreclosures were filed but this year only 5 foreclosures have been filed in La Plata County. December 2006 had experienced 6 filed cases but there had been none such filing this December. No one is sure whether the pace of the last two months is an indication that the trend is slowing down or just a statistical blip. According to
Murray the number of filed foreclosures will rise next year with the rise in interest rates.

Foreclosure has been rising statewide. During the third quarter the reported filed foreclosures were 9,500 which added to the 19,460 foreclosures recorded during the first 6 months bringing the total to 28,960. This had been stated in a report by Colorado Division of Housing. Compared to the 28,435 files the 28,960 of the first three quarters of this year has already won the race.

The reports say that in the third quarter alone the number of foreclosures sold has been 7,117 which have brought the total to 19,025 for the first nine months alone. This is an amazing rise in number as compared to the foreclosures sold during the last few years. The number of foreclosures sold during 2006 was 15,112 while in 2003 it was 6,258. This gives us a fair idea of the trend. The housing division has stated that the La Plata County is going to experience almost 30% rise in this matter during the current year.

Gov. Bill Ritter says that the government has signed numerous bills in June to avoid mortgage fraud and broker licensing as well as other issues. This step has been taken to provide the citizens with as much protection as possible from those who are in the business to harm others. Ritter said that Colorado has to fight hard against high foreclosure rates and the main aim of the administration under him is to protect the homeowners and communities. An important step has been taken by implementing the legislation. This would require the joint effort of industry and government in order to ensure that it works. Colorado Division of Real Estate Director Erin Toll has restricted the mortgage loan prepayment penalties by issuing an emergency rule. According to this rule those prepayment penalties have been prohibited which surpass the adjustment date of teaser rate, interest rate or payment rate. This rule was implemented from Dec 14th.