County foreclosures set record - again

Another month, another foreclosure record in El Paso County.

Foreclosures totaled 488 in March, the third time since December that monthly foreclosures have set a record, according to a report today by the County Public Trustee's Office. The previous record was 457 in February.

For the first quarter of 2008, foreclosures totaled 1,216, which eclipsed the number of foreclosures in all of 2001, Trustee's Office records show.

In addition, the number of deeds released in March was at one of its lowest monthly levels in the past three years. Releases are a positive sign; they signal a homeowner who has successfully paid off a mortgage, refinanced a home or sold a property.

"There's not a lot of good news on housing," said Tom Mowle, the new El Paso County Public Trustee.

Colorado Springs and El Paso County, like other communities, have fallen victim to a foreclosure meltdown. Millions of homeowners nationwide, many of whom had risky credit histories, bought homes using non-traditional mortgages such as adjustable rate, interest-only and no documentation loans. As interest rates increased on adjustable loans, or because of financial woes caused by a job loss, illness or divorce, many homeowners were unable to make their mortgage payments and fell into foreclosure.

There are a few things to keep in mind about foreclosures.

A foreclosure filing is the legal action by which a lender seeks to take back a home when an owner defaults on mortgage payments.

Not every filing results in the loss of a home, however. Sometimes, homeowners come up with money and catch up on their missed payments; other times, they work out a payment plan with a lender, who withdraws the foreclosure action.

In addition, El Paso County's foreclosures are being spread out over a greater number of households because of the county's growth. Even as foreclosures rise, the rate of foreclosure per household is much lower than 20 years ago.

Meanwhile, home construction wasn't much better last month in the county.

Single-family building permits totaled 136 in March, down nearly 50 percent from the same month a year ago, according to the Pikes Peak Regional Building Department. For the first quarter, single-family permits totaled 359, down 43.5 percent from the same period in 2007.

CONTACT THE WRITER: 636-0228 or rich.laden@gazette.com