Last month, Colorado’s foreclosure filings had the highest increase in seven years. The increase in foreclosures filings rose a whopping 57% from the previous August (2013). Colorado hasn’t seen that type of increase since the beginning of the mortgage crisis in 2007. Statewide, foreclosure filings rose 23%.
The Denver – Aurora area saw the greatest increase with an astounding 116% jump in foreclosure filings from August a year ago. Aurora alone currently has over 7,000 homes in foreclosure. Arapahoe, Adams, Jefferson, Weld and El Paso counties all had high numbers of foreclosure filings as well.
Colorado saw one other increase this year in foreclosure filings back in April when the filings rose 21.2% from the previous year and a 31.5% jump from the previous month (March). This 57% increase last month was somewhat surprising and took many analysts off-guard.
Foreclosure activity throughout the United States jumped 7% in August for the second consecutive month with the banks starting the foreclosure process on approximately 55,000 properties. The banks additionally scheduled another 52,000 housing auctions last month and lenders reclaimed another 26,343 properties in August.
There have been suggestions the increase in Colorado may be due, in part, to Colorado Attorney General’s extensive, two-year civil law enforcement investigation and subsequent lawsuits against the state’s two largest foreclosure law firms: Castle Law Group and Aronowitz and Mecklenburg in July of this year.
The lawsuits allege violations of Colorado’s Consumer Protection Act, Anti-trust Act and Fair Debt Collection Practices Act wherein Colorado homeowners were overcharged nearly $100 million by the two law firms. The lawsuit stated the law firms unlawfully exploited the foreclosure process by misrepresenting and inflating the costs they incur for foreclosure-related services to fraudulently obtain tens of millions of dollars in unlawful proceeds. Aronowitz and Mecklenburg immediately agreed to pay $10 million to settle the case and will either sell or close its office based in Denver within the next six months.
Those lawsuits steered lenders to transfer many of their foreclosure cases to new law firms. The new law firms, in numerous cases, began the foreclosure process all over again, as if they were new cases.
Vice-president of RealtyTrac, Daren Blomquist added the latest figures “is reason to wake up and realize the housing recovery we’ve seen over the past two years is not as strong as it might have seemed.” Blomquist also stated “Foreclosure activity has been artificially low in Colorado since the spring of 2013, when the state attorney general first started issuing subpoenas” referring to the lawsuits against Castle Law Group and Aronowitz and Mecklenburg.
Foreclosure can be a serious issue, and it is best to get foreclosure help as soon as possible. Beware of loan mod “companies’- they are almost always a scam. Contact a licensed, skilled foreclosure defense attorney if you need foreclosure help. Keith Gantenbein is the premier foreclosure defense attorney, located in Denver and serving all of Colorado. Colorado foreclosure defense attorney Keith Gantenbein has been featured on both national and local news multiple times, known for his tireless and effective work for homeowners. He recently worked with Colorado Rep. Beth McCann and Senator Jesse Ulibarri in drafting and passing 2 Colorado House Bills to protect homeowners: the first in the State of Colorado. You can read more about Denver foreclosure defense attorney Keith Gantenbein HERE.
Keith Gantenbein, of The Gantenbein Law Firm, Colorado foreclosure defense practice includes Colorado foreclosure help, such as foreclosure prevention, evictions, judicial foreclosure, HOA foreclosures, loan modifications, cash for keys, foreclosure settlement, short sale assistance, foreclosure assistance, foreclosure help in Denver, Rule 120 Foreclosure Hearings, post-foreclosure litigation, foreclosure set-aside, Colorado foreclosure help, and all other foreclosure defense legal assistance. His real estate practice includes real estate closings, title issues, quiet title, real estate contracts, lien issues, bankruptcies, mortgage negotiations, lender liability, real estate litigation, evictions, contracts and landlord/tenant. If you think you will be facing foreclosure, or are in the foreclosure process, or have had a wrongful foreclosure, contact Colorado foreclosure defense attorney Keith Gantenbein at 303-618-2122 for a one-hour consultation, where he will discuss your situation and go over all your options with you.
Keith Gantenbein also practices homeowner defense against HOAS– including HOA foreclosures, HOA liens, HOA lawsuits and defense against wrongful covenant enforcement.
Gantenbein Law Firm practice includes Colorado Foreclosure Defense, Colorado Real Estate Law, Colorado and Federal Tax Law, Colorado Business Law, Colorado Wills & Trusts, and Credit Dispute and Credit Repair. For more information, visit our WEBSITE.