The Foreclosure Report

Rate Increases Worry Colorado Trustee

The Grand Junction Sentinel has this update on defaults in that part of Colorado. "The number of foreclosures in Mesa County dropped 2 percent in 2005 from the year before, according to the Mesa County public trustee. Foreclosures totaled 384 last year, down slightly from 392 in 2004, Public Trustee Barbara Brewer said."

"Brewer said she is concerned that as mortgage interest rates increase, more homeowners may face foreclosure. In recent years, many homeowners have financed their homes with interest-only loans or adjustable-rate mortgages, both of which can leave overextended borrowers vulnerable to interest-rate increases."

"Higher interest rates mean borrowers who are pinched by rising payments on their current mortgages might not be able to find a less-expensive way to refinance their loans. 'I worry they’re not going to be able to make their payments,' Brewer said. 'I’m afraid we may see more foreclosures in the next couple of years.'"

"The number of foreclosures in Mesa County in recent years is a far cry from the levels reached during the years immediately after the oil-shale bust. Foreclosures peaked near 1,600 in 1985, then steadily declined to a low of 43 in 1994, according to Brewer."

And the Pueblo Chieftan has this. "A housing market analyst contends housing values are overpriced all over the country, Pueblo included. Sticker price does not play the biggest role in the rankings, the analysts note. Income levels, population density, interest rates and other considerations are the main factors, they say."

"Grand Junction is tops in the state at 31 percent over valued, even though its $183,632 price tag is well below Denver, Boulder ($305,655) and Colorado Springs prices."

posted by Ben Jones @ 1:35 PM