Colorado is on pace to see a 25 percent increase in foreclosure filings this year, with 19,460 being filed in the first six months of the year, according to a Colorado Division of Housing report released today.

The report showed more than half the foreclosures — 10,017 — occurred during the second quarter.

Foreclosure filings increased 6 percent in the second quarter from the first quarter, according to the report.

The division anticipates more than 36,000 foreclosures this year, almost a 27 percent increase from the record 28,435 in 2006.

"It looks like we're very unlikely to see any declines in foreclosure rates this year," Kathi Williams, director of the Colorado Division of Housing, said in a statement.

"There are still plenty of adjustable-rate mortgages set to readjust, and there is plenty of inventory on the market. If you can't make your payments, and you need to sell your house, odds are that you won't be able to sell it quickly or easily. That's certainly part of what's driving the foreclosure numbers we're seeing along the Front Range."

The report also showed that in the first six months there were 11,908 foreclosure sales in the state, compared with 13,643 for 2006.

Foreclosure sales increased 118 percent from 2003 to 2006.

A foreclosure sale is the stage in the foreclosure process at which the property is sold at public auction 45 to 60 days after the initial foreclosure filing.

The sale also marks the point at which the homeowner has lost the right to repay missed payments and reinstate the home loan.

Zachary Urban, administrator of the Colorado Foreclosure Hotline (1-877-601-HOPE) and director of housing counseling for Brothers Redevelopment, said there's been no dropoff in hotline activity.

"What concerns us the most, though, is that there is an increasing number of properties going to sale at auction," Urban said. "A foreclosure filing is not the end of the world, but once the home is sold at auction, there's very little that can be done. People need to call us because there's a lot that can be done between the filing and the sale."

Not all homes that enter the foreclosure process are sold at an auction by the county public trustee office.

In the Denver area, many banks instead accept a "short-sale," in which the lender will take less than the mortgage amount for the home. Typically, the homeowner still loses the house, but it usually costs the seller less and does less damage to the owner's credit report.

Most of the growth in foreclosure filings was found in Adams and Denver counties. Adams County filings increased 19 percent from 1,456 to 1,734 over the last two quarters.

Denver filings increased 10 percent to 2,151 from 1,940. In many counties, there was little growth in foreclosure filings between the first and second quarters. This is consistent with seasonal factors that generally point to less growth in foreclosure activity during the second quarter, according to the division of housing.

Foreclosure sales at auctions, on the other hand, increased in all large Front Range counties.

In Arapahoe County, foreclosure filings decreased 6 percent, but there was a 13 percent increase in foreclosure sales in the second quarter from the first quarter.

Pueblo County reported a 5 percent decrease in filings but a 17 percent increase in foreclosure sales.

In Colorado overall, foreclosure sales at auction increased by 13 percent to 6,322 in the second quarter, from 5,586 in the first quarter.

Foreclosure activity is the strongest on the Front Range from Larimer County to Pueblo County.

Adams County reported the highest foreclosure rate with one foreclosure filing for every 45 households. Denver and Weld counties reported one filing per 60 households and one filing per 62 households, respectively.

Boulder County reported a lower foreclosure rate than any other Denver metro county, with one filing per 264 households.

Excluding the Denver metro area and Weld County, Pueblo County reported the highest foreclosure rate — 1 filing per 78 households.

The Western Slope fared much better with Garfield County and La Plata counties reporting only 1 filing per 506 households, and 1 filing per 479 households respectively. Statewide, there was 1 filing per 181 households.

The report can be accessed online at the Colorado Division of Housing Web Site or by clicking here.

rebchookj@RockyMountainNews.com or 303-954-5207

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