Colorado famous for its biggest attraction the Grand Canyons is now becoming famous for something else altogether: bank foreclosures. Yes! Off late Littleton bank foreclosures has hit the real estate market in Colorado. The after effects can be seen in those neighborhoods where homes have been foreclosed and which bear a deserted look today. In fact, many people believe that a rise in the crime rate will be inevitable if the rate of Colorado foreclosure homes doesn’t decrease.
The Colorado Public Trustees reported foreclosure filings of up to 9,254 homes in the first quarter of 2007 itself. This was a huge blow for homeowners and the real estate market as the number of Colorado bank foreclosures in the 1st quarter was exactly 1/3rd of the total filings made in 2006. Including Littleton foreclosure homes and the filings in Jefferson County, the total number of filings in 2006 was 28,453.
Experts believe that if the same rate continues through 2008 then there will be an increase of 20%-30% in filings and this will disturb the entire market. The trend of foreclosure homes in Colorado so far has seen a 31% increase from 2005 to 2006 and 110% increase in the period between 2003 and 2006. The problem is that the rate of 2008 might just surpass all the previous records and hit the Colorado economy hard enough for the real estate market to experience a slump. If that happens then more homeowners will find themselves without a home and the crime rate will increase in the neighborhoods with high number of foreclosed properties. This is certainly not the future that Colorado has been planning for.
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Written by Alex Rolim.
