Denver Foreclosure Rate Predicted to Hit Record High
Denver’s foreclosure rate continues to climb. More than 9,500 real estate foreclosures have been filed in the Denver area in the first half of the year, about 34 percent more than in the first six months of 2005.
If the rate of increase continues, we could see a record number of foreclosures by the end of the year. 1988 saw 17,122, foreclosures, and experts are predicting this record to be broken by the end of 2006.
Experts are concerned about the number of people in danger of losing their homes because of the impact on a local economy that is otherwise showing strength by most measures. Tom Clark, executive vice president of the Metro Denver Economic Development Corp. remarked on the trend: “The thing that continues to puzzle me is that all of the other underlying parts of the economy are strong. Our job growth is good, our personal per capita income is among the top in the country, our productivity is going up. Everything is strong except for the rising foreclosures.”
However, even a strong economy and the presence of new jobs sometimes isn’t enough to help homeowners keep up with the skyrocketing interest rates associated with Adjustable Rate Mortgages.
Kevin Marchman, executive director of the National Organization of African Americans in Housing, and the former head of the Denver Housing Authority, noted that blacks and other minorities have been hit particularly hard and are often victims of predatory lending and scams.
“My best guess is that upwards of 30 percent of the foreclosures are due to predatory lending,” he said.
One of the best ways to avoid predatory loan scams is to educate yourself on the types of loans available to you and to realize that if a deal sounds too good to be true, it probably is. And unless you’re sure you can afford them, be wary of ARM loans. This is a lesson millions of Americans are now learning too late.
Tommorow, the ForeclosureListings.com Blog will feature some tips on how to avoid mortgage and loan fraud.
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