Colorado Forbearance and Foreclosure Data

This episode attempts to answer the question of whether or not we will see a wave of foreclosures as a result of the COVID-induced recession. Joe Massey has some good, solid data that we can use to determine how many of the forbearances might turn into foreclosures and how they might affect the Denver residential housing market in the near future. Is our extreme sellers’ market changing anytime soon? Listen to the podcast to find out.

Last week I attended Your Castle’s quarterly webinar. Joe Massey with Castle & Cooke Mortgage gave a presentation on the current lending environment focusing specifically on forbearance and foreclosure data for homeowners in Colorado.

He has some good, solid data that we can use to determine how many of the forbearances might turn into foreclosures and how they might affect the Denver residential housing market in the near future.

The question this presentation focuses on answering is whether or not we will see a wave of foreclosures as a result of the COVID-induced recession that could take us out of our extreme sellers’ market.

This blog post is only a summary. To get the full presentation and data run down, listen to the podcast or watch the video (at bottom).

Executive Summary

  • 90,366 homes in Colorado are in forbearance (8.65%)
  • Of those 90,366 homes, only 5% (or 4,518) are delinquent
  • 4,500+ delinquent homeowners account for only 0.27% of the homes in Colorado
  • What if all 4,500+ homes came on the market tomorrow? How would it affect our months of inventory?
  • Will these 4,500+ delinquent homeowners make a meaningful impact on the market?  – NO!

Joe and I will do another review of the data in six months, so stay tuned!

There are 90,366 forbearances in Colorado (8.65%)

forebearance data for Colorado real estate market

Only 4,518 of those in forbearance are delinquent

foreclosure predictions in Denver

4,518 accounts for only 0.27% of homes in Colorado

delinquent homeowners in Colorado

These homes would not have a meaningful impact on the market.

Denver real estate market forebearance data

YouTube Video: Forbearance and Foreclosure Data for Colorado

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Authors
Chris Lopez
Chris Lopez is a Denver area real estate entrepreneur and investor, as well as the host of Bigger Pockets’ House Hackerz and the Denver Real Estate Investing Podcast.
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