Denver housing market in free-fall as foreclosures eclipse record

[Jcrowley]

Denver housing market in free-fall as foreclosures eclipse record
  Sara Gandy  Web Producer

Created: 12/5/2006 7:35 AM MST - Updated: 12/5/2006 7:35 AM MST

DENVER (AP) - Denver's 2006 real estate foreclosure rate is now officially the worst on record.

With one month left in the year, foreclosures have already eclipsed the record set during the 1988 oil industry collapse which sent Colorado's economy into a tail-spin.

Experts are saying Denver's spiraling market should serve as a warning to the rest of the country.

An analysis shows many of the year's nearly 18,000 Denver metro-area foreclosures fall in what is being called the "foreclosure belt" of Adams and Weld counties and north Aurora, while upscale neighborhoods are nearly unscathed.

http://www.9news.com/acm_news.aspx?OSGNAME=KUSA&IKOBJECTID=530a883b-0abe-421a-0036-0dce0e9d44c1&TEMPLATEID=0c76dce6-ac1f-02d8-0047-c589c01ca7bf

[central scrutinizer]

1. so much for that "soft landing"

!POP!

[paulk]

2. it's funny, back during the Denver 2003 Municipal elections

I had (at that time) a storefront up in NW Denver (Highland's Square) - a lot of the city council and mayoral candidates would come by the businesses to talk. By my count, I talked to about 13 different candidates over a couple of months time - I asked every single one of them if they thought that Denver's inflated real estate market was a good thing, considering that it could lead to the same situation we'd had in the late eighties. Only one of them even felt it was a problem (and he didn't get elected). That included our current mayor, who flat out didn't want to hear about it. This in front of the three newspaper reporters he had with him. (And none of whom felt the need to write about much more than Hickinlooper's position on downtown parking).

Our city government in Denver has been... why be polite? - whores to the real estate and development community and the results of this are going to be devestating to the city's economy and possibly the state's. On the other hand, I'm sure there are quite a few already wealthy folk from Denver's ruling class ready to snatch up those foreclosed properties for cheap.

[necso]

3. The hyping-up of real estate

prices, the gross underreporting of inflation, the risky loans and loan practices, the artificially low interest rates (which we are now stuck with -- unless you wish to pull the rug out from under our fragile economy), etc, were (and are) -- essentially criminal practices -- and another means of transferring wealth to the predators who have taken over.

(I've nothing against predators in general -- and I've learned to expect this sort of behavior from my fellows -- but those who seize power and wealth should have at least some of the characteristics that characterize a successful predator in nature. And one would hope that these oligarchs would be alpha-types (as in nature), who would provide for the pack in return for their status and privileges. But of this there's no evidence.)

[Demeter]

4. Tax the Predators! RICO the Crooks! Tidings of Comfot and Joy!

[goforit]

5. Ouch!!!.... Take a big deep breath.

[Gormy Cuss]

6. The last sentence in the blurb is the saddest part of it all

"Observers say Denver's hot market for mortgage fraud has created what one called a "Wild West" atmosphere that has left buyers trapped in bad loans with no way out."


That would be one of the reasons why the upscale neighborhoods are unscathed, I would guess.

[gratuitous]

7. "Should serve as a warning"

Funn-ee! There will be an army of folks out there telling people all across the country that Denver is or was a special case, and that you can't really draw any conclusions about what might happen in your own overheated real estate market based on Denver, and on and on and on. Of course, those braying the loudest about what a great deal real estate is will be just as quiet as they dump their properties just before the slump, waiting like vultures to feast on the misfortunes of others.

If you're a real estate speculator and you feel like you're leveraged to the hilt, my advice would be to walk away from this game right now. The overrich will do okay; the poor never had the wherewithal to play; and the folks who will take it in the shorts will be the minor leaguers seduced by the siren song of fast turnover and easy profits. Not that some of them don't deserve to get clobbered, but . . .

[OrangeCountyDemocrat]

9. My Area Is Different

I live in Orange County, and Southern California will be immune from any downturn in Real Estate.

:sarcasm:

I figured nobody here would be dumb enough to say that, so I wanted to speak for the various MORONS outside of DU, who think that their area is unique, and will be unscathed.

The whole country is in a Bubble, and the whole country is F&*KED.

[slackmaster]

11. The whole country is not farked

Only people who within the last few years bought a house with a small down payment, or over-extended themselves in credit. Many of them are in DEEP SHIT. People who had the good fortune to buy earlier and the good sense to avoid those mistakes are not in danger of losing their homes.

I bought my house 12 years ago, now have less that 12 remaining on a 15-year mortgage fixed at 4.75%. I have a small balance on a HELOC, and no credit card debt. I'm sitting at about 20% loan-to-value based on comparable sales in the neighborhood.

[Sen. Walter Sobchak]

14. oooh yeah...

Someone I work with just put down a fortune for a complete dump in Garden Grove - they think it will resell for a million in less than three years...

right...

[OrangeCountyDemocrat]

15. Garbage Grove?

Wish them luck with that.

Also, ask them to please pass the bong this way.

[EST]

8. There is no joy in saying I told you so. How many times

have we conservative democrats-the real conservatives-tried to persuade, argue, protest, hammer, hammer, hammer?
When I think of those poor people, probably most of the thousands who've had to give up their homes because of, ultimately, those pseudo-conservative republicans, my anger goes nuts.

I went through some pretty horrifying times, many years ago, when I lost everything, and I know how bad it can get--the depression, the thoughts of suicide, the battle you go through to scrape the shattered bits of your self respect back together and try to become human again.

These people-I can't call them predators, more like alligators or vultures- use every human behavioral trick in the book to entice folks into deals they're never going to be able to support and once they have sucked every nickel they can off them, kick them out the door and let'm rot.

The real tragedy is that the vultures will land on their feet while the poor folks go hungry and cold.

Damn them!

[AnneD]

10. I too went through tough times

and have warned folks for a while now. I am thankful I was able to rebuild myself-some folks may not be so lucky. And now is is too late, the storm is on the horizon.

[Tellurian]

13. We're living in a bankrupt economy as it is, thanks to GWB..

If the printing presses at the Treasury ever broke down,
the walls would come tumbling down over DC as we type.

[sarcasmo]

12. I can't wait to see the first quarter earnings reports in 07.

After Christmas will anyone spend money?

[leftofthedial]

16. I have several friends in real estate and related jobs

who are really crying now.