Foreclosures in the Colorado Springs Real Estate Market
The Colorado Springs Real Estate Market has had 2,531 foreclosures since 1/1/2008.
These numbers are higher than we have ever seen. Since 1981, the highest annual foreclosure rate was in 1988 with 3,476 foreclosures.
In 2008, we have been seeing an average of 422 new foreclosures started every month.
This means that by the end of the year, we will see a total of 5,064 foreclosures in the Colorado Springs real estate market.
This is almost 10x what it was in 1996. Unbelievable.
The sad thing about these statistics is that MANY of these homes did not need to foreclose.
Psychologically, once a homeowner realizes that they can no longer afford to make their monthly payments, they just ride out the months until the home sells at the foreclosure auction. Sadly, most of these folks are facing foreclosure because of a mortgage rate increase or something traumatic happening to their life (divorce, illness, death, job loss, etc.) and cannot afford to refinance. Chances are that even if they COULD afford to refinance, their home has not gained enough equity to let that happen anyway.
However, these distressed Colorado Springs homeowners are not alone. One in four people in Colorado Springs are in some state of financial distress with their mortgage. Yes, some may only be a month or 2 behind and are not facing imminent foreclosure yet, but there are A LOT of people in the same boat. This means that if you look down the street in your Colorado Springs neighborhood, about every 4th home will be in some stage of foreclosure – or close to it.
Foreclosure does not ALWAYS need to happen. If a homeowner knows that they will not be able to keep making their monthly payments, there is always the option to sell their Colorado Springs home before it forecloses. This will save, not only some of their credit, but also their peace of mind. Even if a homeowner owes more than they could sell their home for (which is true for a lot of Colorado Springs homeowners out there right now), you could STILL possibly sell your home and get out from under foreclosure.
If you (or someone that you know and love) is distraught because they are losing their home to foreclosure, a Colorado Springs Real Estate Agent may be able to help them SELL it before it is too late. You and your agent can work together to chop these high foreclosure rates down … and help people get out from under their mortgage burden in the process.
Derek and Mariana Wagner of the Colorado Springs Real Estate Connection and Wagner iTeam are currently in the process of becoming Certified Distressed Property Experts and can effectively negotiate with your banks to get your home SOLD, regardless of what you owe them … helping YOU get on with LIFE. Call us as soon as you can. The more time we have to help you avoid foreclosure, the better: (719) 434-7525