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Park County Foreclosure Second Highest in Colorado

By Faye Mergel
Published: Thursday, December 31st, 2009

With one completed foreclosure in every 55 homes, Park County recorded the second highest rates in the state of Colorado for the third quarter of 2009, just lagging a little behind San Juan County. A foreclosure severely impacts a credit report, which could ruin finances of foreclosed households.

Park County Foreclosure Second Highest in ColoradoThe Colorado Division of Housing recently reported that Park County has the second-highest foreclosure rate than any other county in Colorado during the third quarter of 2009.

Ryan McMaken, community relations director and spokesman for the Division of Housing, cannot give a precise reason yet for the unusually high foreclosure rate, but he noted that it is the highest the county has seen than ever before.

Moreover, this increase in foreclosure rate is very sharp. During the first quarter of this year, there was one foreclosure in every 193 homes. For second quarter, there was one in every 90 homes.

McMaken said it takes longer for counties to recover from higher foreclosure rates. For him, there was nothing unusual about the foreclosure in Park County except that it was affected by the country’s foreclosure trends later than other counties. Consequently, it will recover later than those that were affected earlier. He noted that counties like Denver and Adams are already beginning to recover.

During Park County’s growth years, it was a place where people found affordable housing, according to McMaken. However, high unemployment rate and lack of job growth is severely affecting this county.

People who are beginning to recover will most likely search for homes near the metropolitan area before they start looking for farther places like Park County. Once those places are filled up, people will start looking for homes in the area again.

Aside from Park County homeowners who have undergone foreclosure, many of them also resorted to short sale as they can no longer keep up with mortgage payments. In such cases, homeowners sell their house for less than the amount they owe.

Industry specialist Sharon Been noted that local banks sometimes give homeowners options if they are on the verge of short selling their homes. Banks may provide a loan for the difference during this short sale, which homeowners usually pay off for 10 years. However, such loans would show up on a credit report as a bad debt for the payment duration.

Another option would be a 1099 form, in which banks report the difference in the sale as income. Since it is an income, it will be taxed by the Internal Revenue Service. However, the good thing is that it will only stay for two years on a credit report as a bad debt.

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