Colorado Has Highest Foreclosure Rate

Colorado had the highest rate of residential foreclosures in the nation in December, the ninth month the state held that position last year.

Nevada had the highest rate in November, but foreclosures in that state dropped 12 percent in December.

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Colorado had one new foreclosure filing for every 376 households in December, according to RealtyTrac, an Irvine, Calif.-based company that tracks foreclosures.

Greeley had the highest foreclosure rate out of more than 200 urban areas nationwide for the fifth consecutive month.

"That's a matter of concern, particularly since we haven't had the appreciation in home prices that Nevada has had or the amount of speculative buying," said U.S. Bank regional economist Tucker Hart Adams.

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"It's concerning that it's as high as it is in a state that has been through a huge housing boom and bubble. I don't think we're anywhere close to the end of it."

Adams County had the highest rate among Colorado's 43 counties, with one in every 168 homes in foreclosure. Weld County was second in the state with one foreclosure for every 169 homes.

Shawna Stieber, a Metro Broker Day Co. a who specializes in Adams and Weld counties, said lenders are to blame for the high rates.

"I constantly have people come to me and say the max they can afford is $1,000 a month," she said. "Then they go to the lender who says, 'If you change your exemption and do this and do that, you can afford a $180,000 house.' There's a big difference between a $100,000 house and a $180,000 house."

Experts also say inflated appraisals and aggressive building in Weld County, northeast Adams and Denver counties and parts of Aurora are fueling foreclosures.

RealtyTrac said 109,652 homes across the country entered some stage of foreclosure in December, a nearly 9 percent drop from the previous month, but an increase of 35 percent from December 2005. The company reported a national foreclosure rate of one new foreclosure filing for every 1,055 U.S. households.

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