Current Mortgage Rates Colorado

Roy Landers asked:


It’s a cloudy and murky storm now hovering over the once clear blue skies of the real estate market. Due to the sub prime and adjustable rate fiascos, foreclosures have dramatically increased and home values nose diving like huge drops of descending rain and creating a mortgage mess.

Here’s the current real estate weather report. Foreclosures increased by 75% in 2007 with more than 2.2. million filings nationwide. The largest clouds hover over the states of Nevada, Florida, Michigan, California and Colorado respectively, with California alone having a record number of 481,392 foreclosure filings. 2008 is expected to follow suit and will likely be more ominous than 2007.

As foreclosures increase, more homeowners are feeling desperate and discouraged. Authorities in economic stressed cities like Detroit, Michigan see a correlation between pending foreclosures and homes burning. The conclusion is arson is on the increase due to motivation by stressed out homeowners to fix their situation by torching the premises and hopefully cashing in on insurance proceeds and relieving themselves of going through the foreclosure process.

The mortgage meltdown has caused some neighborhoods across the nation to be plagued with blight because homeowners, unable to make mortgage payments because of bad or ill advised adjustable rate loans that have caused their payments to balloon beyond affordability, have abandoned properties leaving them vacant and becoming havens for insect infestation and stray animal hangouts.

Some homeowners, angry over the whole muddy mortgage situation, have taken it even further by deliberately causing damage to the property before they abandon it by leaving water running and creating mold and mildew problems or just physically destroying portions of the home.

Currently, the FBI is investigating 14 companies related to the mortgage crisis on claims of mortgage fraud, SEC inside trading and other alleged illegalities associated with the sub prime real estate market.

The Mayor of Baltimore, Maryland sued Wells Fargo Bank on claims that the bank is guilty of “reverse red lining” actions - making deliberate high risk sub prime loans in minority neighborhoods under circumstances that the bank knew or had reason to know would fail. This is the opposite argument made against banks years ago when they were found guilty of drawing a red line around areas that they deliberately would not make loans in - predominately ethnic minority neighborhoods, hence the term redlining. The Mayor claims minorities hold more than 60% of the adjustable rate loans made by Wells Fargo and now the majority of those loans are failing and the foreclosure grim reaper is taking its toll.

The above facts provide more than enough evidence to support the premise that the real estate industry is caught up in a stormy situation. The dark clouds of sub prime failures and the gale wind force of foreclosures make the future look bleak and dim…..But, there is a silver lining amidst all the dark clouds.

Where’s the silver lining? The evidence is beginning to show itself already. There is and definitely will be good times ahead for the real estate market sooner rather than later. It depends on the lenses you’re looking through.

Interest rates on federal funds dropped to 3% on January 30, 2008. Mortgage rates are reacting and starting to fall too. This will prompt more refinancing and help many homeowners that can still refinance troublesome adjustable loans into 30-40 year affordable fixed rate loans thus avoiding the likelihood of future foreclosure or other financial problems.

Congress is contemplating and most assuredly will make legislation or regulatory changes in the maximum amount of the loans that can be acquired with FHA insured backing. The current loan limit of $417,000 is unrealistic in the current market. The democrats are seeking loan limits of more than $700,000. The Republicans suggest limits in the $600,000 range. The obvious observation here is that both parties agree the $417,000 limit must be raised. Once that happens home buyers will be able to access more loan funds and buy houses that are not available right now.

Home prices are down and new home sales are at a record low. Sellers are very motivated and willing to assist buyers with financing. This all adds up to A BUYER’S MARKET. That’s the silver lining.

Home buyers, especially first time home buyers will be a huge factor in weathering the storm of the mortgage mess. The winds of change are upon us. History will repeat itself. Out of the dumps of the real estate market the proverbial Phoenix will rise.

Cecilia Valenzuela asked:


Foreclosures are occurring at an alarming rate and have been for quite some time. No one likes to talk about losing their home, but the fact is, more and more Americans are in fact, in foreclosure or have already lost their home.

Need some advice on avoiding foreclosure?

Here is some general information about foreclosures.

Several states have a record number of foreclosures, such as Arkansas, Arizona, Colorado, California, Florida, Illinois, Massachusetts, Maryland, Michigan, New York, New Jersey, Ohio, Texas, Utah, Virginia, and Wisconsin.

CNN Money reports that adjustable-rate mortgages, especially mortgages that are considered, sub-prime adjustable rate mortgages, continue to contribute to foreclosures.

According to the San Francisco Chronicle, Americans borrowed $2.2 trillion dollars through attractive adjustable rate mortgages between 2004 and 2006.

These adjustable rate mortgages were hard to pass up with low monthly payments.

Unfortunately, these ARMS (adjustable mortgages) cannot last forever. Experts explain that these adjustable rate mortgages need to reset themselves in order to make up for the difference through higher rates, which means a higher mortgage payment.

You don’t need to be an expert in real estate to figure out that when the banks significantly raise someone’s mortgage payment, you are going to see many foreclosures.

It’s also predicted that as these mortgage loans reset, 1.11 million homeowners will lose their homes. This prediction was reported following a study completed by First American CoreLogic, a firm that documents home mortgage risks.

If you fail to make a payment by the due date, the lender has every right to start the foreclosure proceedings. Many banks will allow you a “grace period,” so as not to start any foreclosure process.

After a certain period of time, the lender will send you a certified letter stating that your loan is in default. Included will be any penalties and any unpaid mortgage totals. It is important that you contact the lender to try and work out a plan to pay the bank back.

Banks are not in the business of owning homes; banks are in the business of lending money. Banks do not want the house back! Contact them and try to work out an agreement to pay them back the unpaid payments.

Your loan will likely be reinstated if you bring the mortgage back to good standing if you pay back any outstanding mortgage payments and fees.

If the lender has given you the allotted time to make the loan current, and you cannot make the payments, the loan will still be considered in default and there will be a scheduled auction.

Following the auction, if there is any money still owed to the lender, the homeowner may be required to pay those debts owed. If there is money left over from the auction, that amount of money will go to the foreclosed homeowner, if all of the fees have been paid to the lender.

With any court foreclosures, the sheriff carries out the sale, which is about 45 days after the county clerk orders the sale. The auction is open to the public which means anyone who has the available funds, may bid on the foreclosed property.

Generally, the accepted bid must be paid to the sheriff no later than 5:00 P.M. on the day of or the day after the auction.

A certificate is issued following the foreclosure sale. If the property is not abandoned at the time of the sale up to the next six months, this is known as the redemption period. Some states will allow the borrower to redeem the property. Any secondary lender may redeem the property within a certain amount of time. In order to redeem the property, the total amount owed including any fees, must be paid.

If there isn’t anyone who redeems the property, the sheriff will then transfer the ownership to the winning bidder at the time of the foreclosure auction.

With Out of Court Trustee Sales, notice of the sale is noted which includes the property description, date, time, place, etc. The auction notice is then recorded with the county.

The trustee mails the notice to all interested parties. This notice is sent out three months before the sale date and will be published in the local newspaper.

No less than 20 days before the sale, the foreclosure auction notice is posted on the property and the county courthouse.

The day before the sale is scheduled to take place and leading up to the sale, the trustee must provide the opening bid of the sale to anyone who inquires about the sale. If not, the sale might have to be delayed for a short period of time.

Out of Court foreclosure sales require every bidder to provide a refundable $10,000 deposit in order to bid. The trustee keeps the deposit of the individual with the winning bid.

The winning bidder has until 5:00 P.M. by the next day to pay his/her bid price.

Following the sale, the trustee then transfers ownership of the foreclosed property within seven days. The proceeds of the sale are paid directly to the primary lender, then to any secondary lenders that exist.

There is no right of redemption following Out of Court foreclosure sales.

Bank foreclosures have occurred in record numbers. If you are an investor, your’e likely to find foreclosures all around the U.S.

Will foreclosures decline in numbers? Only time will tell.

The information provided here within, is not considered professional legal advice. It is always recommended that you seek professional legal advice such as a local real estate attorney.

Renold asked:


Hi all,

I want to share some information with you regarding the benifits of colorado home equity loans.

Home equity loans are considered secured loans. A Colorado home equity loan will both allow you to access your home’s equity as a owner. A Home Equity Loan has become an increasingly popular way for consumers to borrow money, especially with the continued increases in interest rates on credit cards. A home equity loan is a type of loan in which the borrower uses the equity in his home as collateral. Colorado home equity loans are also called as second mortgage loans. To get a Colorado Home Equity Loan The interest on a second mortgage is usually tax deductible and also payment schedule can be arranged over a specific amount of time, which allows the home owner the convenience of scheduled payments. If you have a great mortgage interest rate and don’t want to refinance your existing mortgage, a home equity loan might be the way to go.

A home equity loan is a second loan that you take out in addition to your first mortgage . It allows you to get cash from your home’s equity. These loans are sometimes useful for families to help finance major home repairs, medical bills or college educations. Colorado Home equity loans offer several advantages. Interest rates tend to be lower over other types of consumer loans. For more information on Colorado Home Equity Loans . Your home equity is the percentage of the home that you own. Equity means the difference between the current value of the home and the amount you still owe on your mortgage. you can borrow money against that equity in the form of a second mortgage or home equity loan. Home equity loans come in two types, closed end and open end.Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage. Banks and other mortgage lenders generally like issuing home equity loans. For most people, their home is their biggest single asset. The borrower benefits from the lower interest rates offered with “safer” loans.

Compare the interest rates from different mortgage lenders and make a decision. So many lenders will approach you but try to get a loan from a reliable mortgage company which will offer you the lowest Colorado home equity loan rates. Colorado Home Equity Loans are most commonly second mortgage loans, although they can be held in first position. Most home equity loans require good to excellent credit history, and reasonable loan-to-value and combined loan-to-value ratios. Home equity loans and lines of credit are usually, but not always, for a shorter term than first mortgages. In the United States, it is sometimes possible to deduct home equity loan interest on one’s personal income taxes.