Foreclosures in Colorado are down steeply as 2011 nears an end. The state Division of Housing says that foreclosures are down 28 percent.
Colorado foreclosures fell more than expected last month to a 42-month low in metropolitan counties.
Communities outside the Front Range are feeling the foreclosure pain despite a 27 percent drop in foreclosure filings in Colorado.
The downturn in real estate at a time of high unemployment, foreclosures and bankruptcies led to five Colorado bank failures this year that could cost the nation’s deposit insurance fund about $1 billion, or about one-fifth of the fund’s overall losses in 2011.
As home values slip below what people owe on their mortgages people are strategically defaulting on their loans. In some cases, experts say it just makes economic sense.
Many homeowners are trying to avoid foreclosure by getting their loans modified. But some are still running into problems.
State officials say new foreclosure filings in urban and suburban areas in Colorado have slowed but it’s not necessarily because conditions are improving.