The Foreclosure Report

High Defaults In CO, Sheriff Sales In Delaware

Two local reports; Colorado. "Colorado ranks second in the rate of properties entering foreclosure last year, according to a report released Monday. A total of 29,630 Colorado properties, 1.62 percent of the state's households, entered some stage of foreclosure last year. Florida reported 121,843 properties, 1.67 percent of the state's households, entering foreclosure."

"Part of the reason for Colorado's rate is a relatively low rise in home values, said Pete Lansing, president of Universal Lending Corp. The median price of a Denver single-family home rose 4.4 percent over the past year to $246,613. 'If you can't liquidate your property because you've either borrowed too much against it, or the value has gone down, foreclosure is your only alternative,' Lansing said."

From Delaware. "When Kent County Sheriff James A. Higdon took office 11 years ago, the usual number of sheriff sales was five or six a month. 'And now it’s not unusual to have over 30,' he said."

"'Today, Americans live paycheck to paycheck,' said Dover real estate agent Rocke Gaston. 'Look at our credit card debt, it’s atrocious.' Today, he and Vincent White, president of the Delaware Association of Realtors, said mortgages are easier to obtain and there are various financing methods that make it easy for consumers to buy more than they can afford."

"'I foresee a day soon where these mortgages are given out and they’re going to regret it,' Mr. Gaston said."

"Buying a property in a sheriff’s sale requires homework and a strong stomach. 'When you buy a house in a sheriff sale, it’s a risk,' said Mr. Gaston, a frequent auction buyer. It’s recommended that potential buyers research the property for liens and to make sure taxes are current. They might also drive past a property or peek inside a window, but they won’t be able to go inside the house."

"The rest, the sheriff said, is at the buyer’s own risk. 'We can’t guarantee anything,' he said."

"At the auction, the sheriff’s office requires $2,000 in cash or certified check before bidding. The buyer has until the end of the day to give the county 20 percent of the remaining balance of the sale price. 'I don’t think we’ve had a case where they didn’t come up with the money,' the sheriff said."

"Most buyers, he said, are investors who have the cash to buy without financing the property, or have leverage with banks for loans. Sheriff Higdon said he and his deputies are forbidden to participate in the sheriff sales, professionally or privately. Nor have they, he said, bought a home through a private associate."

"Frequent buyers are real estate agents like Mr. Gaston, who said he fixes the properties and resells them. 'I know neighborhoods, I know values, I know what it takes to fix something up,' Mr. Gaston said. Besides investment, the venture is also a project with his sons."

"A year ago, Mr. Gaston said he’d found good bargains on houses. But lately, they’ve sold for close to retail prices. It’s a seller’s market,' he said. 'Were coming to the end of it.'"

posted by Ben Jones @ 1:16 PM