| Instant equity and cheap prices drive demand for | | | | Altogether, the Denver-Boulder-Greeley demographic |
| federal owned properties. | | | | ranks fifth in the country for foreclosures with 1 out of |
| As Colorado reaches all-time highs in state | | | | every 105 homes in foreclosure. Colorado Springs |
| foreclosures and loan defaults, many independent and | | | | which is 65 miles South of Denver ranks thirteenth with |
| corporate investors are at bidding wars for properties | | | | 1 out of 155 homes in foreclosure (RealtyTrac.com). |
| well under their appraised values. | | | | Not all foreclosures are HUD properties; these |
| Due to the recent changes in the market in the 10-year | | | | properties fall back onto HUD when the loans in which |
| Treasury bond and other changes in yield spread | | | | these properties were funded have gone into default, |
| throughout the market that have lifted interest rates as | | | | but only for loan programs which were funded by the |
| of late, many potential home buyers have backed off | | | | Federal Government such as FHA or VA loans. |
| from wanting to buy, paving the way for investors | | | | "Because these loans have gone in default doesn't |
| looking to profit from undervalued homes. | | | | mean that they are bad loan programs, actually they |
| Anyone can bid on HUD's (United States Department | | | | are very good programs. Many of the foreclosures |
| of Housing and Urban Development) list of foreclosed | | | | are due in part to the time in which home buyers were |
| properties, and a bid can be placed for at least 10% | | | | buying homes. Three or four years ago the housing |
| less of the total asking price from HUD. | | | | market was booming and interest rates were |
| Private investor Paul Aragon, from The Aragon Group | | | | excellent. The sub-prime market allowed many to |
| L.L.C. says, "There are plenty of properties to choose | | | | qualify for homes, the same cannot be said today," |
| from on a weekly basis, so picking and choosing the | | | | says Senior Loan Officer Ryan Russo of Colorado |
| right property is a little easier since rates have gone up | | | | Mortgage Helper. |
| as of late and the pool for home occupied home | | | | Russo adds, "Today many lenders have tightened |
| buyers has depleted." | | | | guidelines making it difficult to qualify for a loan, even |
| Most importantly, Colorado has yet to hit rock bottom | | | | for investors." |
| from the foreclosure market. | | | | Even so, investors see the changing of the times as a |
| Denver metro area cities such as Thornton, | | | | time to buy now and sell when the market changes, |
| Commerce City, Brighton, and Aurora continue to post | | | | profiting from others mistakes and fueling the demand |
| increases of foreclosure, and as a result home values | | | | for HUD homes. |
| in these areas have decreased dramatically due in | | | | There will be much to choose from for the time being |
| part to the amount of foreclosures. | | | | in Colorado with no signs of slowing down. |