An improving single-family housing market is helping to reverse foreclosure woes that had plagued the Pikes Peak region over the past few years.
The Colorado Springs-area foreclosure rate — the percentage of properties in some stage of foreclosure — declined to 1.07 percent in December, down from 1.45 percent in the same month a year earlier, according to a report released by CoreLogic, a California-based housing data firm.
The area’s foreclosure rate had been as high as 1.86 percent in January 2011, CoreLogic’s report shows.
By comparison, the state’s foreclosure rate in December was slightly better at 1.01 percent; nationwide, the rate was 2.96 percent.
In another measure of an improving foreclosure picture, 3.47 percent of Springs-area mortgages were delinquent for 90 days or longer in December, down from 4.15 percent during the same month last year. About three years ago, nearly 5 percent of local mortgages were delinquent for at least three months.
Statewide, the mortgage delinquently rate was 4.14 percent in December; nationwide, it was 7.28 percent.
Data compiled by the El Paso County Public Trustee’s Office and the Colorado Division of Housing have shown similar trends. The number of foreclosure filings against Springs-area property owners — which soared as the local and national economies nose-dived starting in 2007 — has declined each of the last few years after hitting a record high in 2009.
With mortgage rates at historical lows, more individuals and investors have been buying homes; that increase in demand is helping to boost prices. As a result, homeowners have either been able to sell their homes or have seen their properties increase in value — helping them to avoid foreclosure actions, said Hank Poburka, a broker with The Platinum Group Realtors and board chairman of the Pikes Peak Association of Realtors.
Likewise, Poburka said, banks seem to be holding off on some foreclosure actions or are more willing to work out loan modifications with homeowners.
“It’s kind of a combination of everything,” Poburka said. “The people that would be under water and would normally be foreclosed on are getting a kind of an extra lease on life, if you will.”
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