Hand over the keys
This week the Colorado Housing and Finance Authority (CHFA) announced that 35% of home mortgage customers have purchased REOs. In 2008, CHFA has closed over $100 million in mortgage loans for previously foreclosed REO properties.
An article featured in DS News lauds Colorado as one of the leading states showing positive growth in this housing market. In Colorado residents are stepping up to buy foreclosures which has not only improved neighborhoods but also has given first time home buyers the opportunity to purchase a home after the previously sky high market in Colorado.
The top three cities where CHFA customers are buying REOs are Aurora, Denver, and Colorado Springs. According to CHFA, the average loan amount for REO properties is $131,345, compared to a $153,289 average loan for non-REO mortgages.
Despite this improvement, foreclosures are still on the rise in Colorado; earlier this month the Colorado Division of Housing reported foreclosure filings in the state were up 16 percent during the first half of the year. The total number for 2008 had reached 22,500 at the end of the second quarter. The division is predicting that the number of foreclosures will still increase from 10-20 percent annually by the end of the year.
Ninety-three percent of CHFA loan purchases for REO homes this year have been made by first time home buyers. Regulations governing CHFA does not allow financing for investor-owned properties. Now is the perfect time for residents (and Brokers) in Colorado to scoop up the deals!
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