Jul

18

Weld County Foreclosure highest in CO

Filed Under mortgage 

I remember driving up to Fort Collins one day last year and seeing all the sprawl that has happened in the area just north of Thornton. Towns such as Dacono, Erie, Firestone, and Frederick seemed to just materialize out of nowhere. Weld county went boom.

Weld County covers an area of 3,999 square miles in north central Colorado. It is bordered on the north by Wyoming and Nebraska and on the south by the Denver metropolitan area. The third largest county in Colorado, Weld County has an area greater than that of Rhode Island, Delaware and the District of Columbia combined.

According to the Denver Post, Weld county goes bust:

Weld has surpassed Adams as the Colorado county with the highest concentration of homes in foreclosure, according to Realty Trac, an Irvine, Calif., provider of foreclosure data.

One of every 66 homes in Weld County entered some stage of foreclosure in the second quarter, compared with one of every 71 homes in Adams County.

Of course, mortgage companies get most of the blame:

“It is not a fact we are real proud of,” said Donna Schmidt, chief deputy public trustee for Weld County. “We are extremely busy.” …

Schmidt blames poor lending practices for the jump in foreclosures in her county, including adjustable-rate and zero-down mortgages.

“We are seeing the tail end of the bad loans that were given out,” she said.

While 100% financing, adjustable rate mortgages, and questionable lending should burden some of the blame, Weld county should also blame over development and builder incentives. After all most of these homes are new builds and most builders have their own in-house lenders.

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