Colorado Springs Vintage Homes Blog
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Shadow Inventory, fact or fiction?
Foreclosures and shadow inventory
As a Colorado Springs Realtor, I live and breath real estate news. There has been a lot of speculation lately on Shadow Inventory, and I’ve been thinking about how to figure out if the Colorado Springs housing market is going to have a problem with Shadow Inventory.
The term “Shadow Inventory” refers to homes owned by lenders that are not being offered for sale yet, but probably will be before 
long. The existence of a ’shadow’ inventory of homes for sale is a hard one to prove, but I did a little research, and here is what I found.
I looked at the Post Foreclosure Sale List from 6-24-09 from the El Paso County Public Trustee’s web site. This is a list of properties that completed the final stage of foreclosure in Colorado Springs, and were either bought back by the lender or purchased by an investor. I definitely found some properties on this list that were purchased back by the lender and still haven’t hit the market to be resold. As an example………
- 7150 Ravine Drive East, Certificate of Purchase went to BAC Home Loans Servicing for $198,072. Property has never hit the market to be resold
- 6993 Harrier drive, Colorado Springs, 80922, Certificate of Purchase went to the Colorado Housing and Finance Authority for $179,785.20. Property has never hit the market to be resold.
- 1524 Prairie Road, Colorado Springs, 80909, Certificate of Purchase went to the Colorado Housing and Finance Authority for $127,788.50. Property has never hit the market to be resold.
Some experts feel that lenders nationwide are sitting on hundreds of thousands of foreclosed homes that they have not resold or listed for sale. And foreclosures, which some banks unload at fire-sale prices, can be a major factor in pushing down home values.
Even though I only went through one foreclosure report from in June, it does make me think there may be shadow inventory; as there definitely seems to be properties that got foreclosed on that still haven’t hit the market. Only time will tell if the Shadow Inventory theory has merit to it and if it will affect our pricing in the Colorado Springs area.
Kathy (719-287-1049) KTorline@msn.com
Learn the Colorado foreclosure process, it’s different
Buying a Colorado Springs Foreclosed Homes — important to understand the trustee process
As a student of Foreclosures in Colorado, both to help sellers facing foreclosures, and to assist buyers looking to buy a Colorado Springs foreclosure, I’m always trying to learn more about the foreclosure process in Colorado. I attended a class this week
taught by Pete Griffiths, the in-house legal counsel for Land Title. Very good instructor, and definitely understands the legal process of foreclosures in Colorado Springs. Here’s some of the things I learned in the class that I thought I’d pass on.
- There was 50,514 foreclosures in Colorado in 2009.
- Legally, the definition of foreclosure in Colorado for contract purposes, is defined as a homeowner who is 30 days behind in their payments.
- Colorado is the only state that has a Public Trustee, whose duties are defined by statute.
- If you are the successful bidder on a foreclosed home at at the Public Trustee auction, you don’t automatically own the property. There are redemption periods for junior lien holders. Only at the end of the redemption periods (if junior lien holders don’t redeem) will you officially be the owner of the property.
- The majority of junior liens are “wiped out” if you are the successful bidder at the Public Trustee sale, but not everything goes away. it’s important to partner with a good title company who can give you information about other liens on the property including HOA liens and tax liens.
Remember, make sure and do your research
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Kathy (719-287-1049) KTorline@msn.com
New Foreclosure reporting bill signed by the Governor
Public Trustees are unique to Colorado
For a FREE List of Foreclosures email Kathy Torline at KTorline@msn.com
Related Articles:
The foreclosure process in Colorado is quite a bit different than in other states because the Governor appoints a 
“Public Trustee” for each county in the state. The trustee must act as an impartial party when handling a power of sale foreclosure. The Public Trustee acts as a representative of the lender to facilitate the sale, which typically occurs in the form of a public auction.
Because of these differences, national foreclosure reporting companies may report a Colorado foreclosed property as many as two to three times between the Notices of Election and Demand, and at the point of a public trustee sale, thereby inflating Colorado foreclosure figures.
Over the years, concerns have been raised that foreclosure numbers for Colorado are inflated versus other states that have already implemented standardized reporting procedures. This can put Colorado at a disadvantage when national numbers are analyzed and compared.
There is a new Bill, HB 1197
How long does it take to do Colorado Springs Short Sale? – Part V in Short Sale Series
Must Read Previous Posts:
- Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
- The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
How long does it take to do a Short Sale in Colorado?
Get a Free Market Analysis on your Home, Email KTorline@msn.com or call 719-287-1049
As I continue to do more and more short sales; I think one of the most valuable services I can provide it to help educate and counsel potential home sellers who are interested in doing a short sale. Short sales aren’t a perfect solution, but they are an option.
There are many steps involved with the Short Sale process……
(1) The first step is an initial consultation with the homeowner to explain the “in and outs” of a short-sale, previewing the home, driving the neighborhood; completing a comprehensive market analysis on the home.
(2) If the homeowner decides to to a short sale …………. Read the rest of this entry »
