The Loveland Daily Reporter-Herald tried to explain away the fact Colorado has a high
foreclosure rate, in part, due to faulty statistics. In addition to quoting local “experts,â
€� the Reporter-Herald even printed an editorial calling on the State Legislature to
investigate why Colorado reports its data differently than other states regarding when a
property has foreclosed. The fact is Colorado did lead the nation in new foreclosures in
2006 regardless of which statistics are used. Foreclosure.com, RealtyTrac.com and MBA
all reported Colorado among the top five states with foreclosures in the United States.
Some statistics are gathered from state records while others simply report the REO (Real
Estate Owned) by lenders following the foreclosure.
According to one quote in the Reporter-Herald, Colorado would be as low as 33 in the
ranking of states for foreclosures in 2006 if the information was properly compared.
Unfortunately, readers were not given the entire story unless they read the Rocky
Mountain News last September. The Rocky Mountain News explained the difference in
how foreclosure statistics are reported by two different organizations that provide such
data. The article also noted that Colorado leads the nation regardless of which method is
used.
“The differences between RealtyTrac, based in Irvine, Calif., and Boca Raton, Fla.-
based Foreclosure.com can be explained by how they count foreclosures.
Foreclosure.com said its data only include properties in foreclosure that have been taken
over by lenders, while RealtyTrac's data include homes that are in stages of pre-
foreclosures.
RealtyTrac showed 6,079 homes in Colorado are in some stage of foreclosure, more than
150 percent higher than a year ago and about 60 percent higher than July.
Foreclosure.com showed 5,577 active foreclosures in Colorado, almost a 5 percent drop
from July and about an 11 percent drop from August 2005.
Both reports agree that Colorado has the highest foreclosure rate in the nation, a dubious
distinction it has held the entire year.�
foreclosure rate, in part, due to faulty statistics. In addition to quoting local “experts,â
€� the Reporter-Herald even printed an editorial calling on the State Legislature to
investigate why Colorado reports its data differently than other states regarding when a
property has foreclosed. The fact is Colorado did lead the nation in new foreclosures in
2006 regardless of which statistics are used. Foreclosure.com, RealtyTrac.com and MBA
all reported Colorado among the top five states with foreclosures in the United States.
Some statistics are gathered from state records while others simply report the REO (Real
Estate Owned) by lenders following the foreclosure.
According to one quote in the Reporter-Herald, Colorado would be as low as 33 in the
ranking of states for foreclosures in 2006 if the information was properly compared.
Unfortunately, readers were not given the entire story unless they read the Rocky
Mountain News last September. The Rocky Mountain News explained the difference in
how foreclosure statistics are reported by two different organizations that provide such
data. The article also noted that Colorado leads the nation regardless of which method is
used.
“The differences between RealtyTrac, based in Irvine, Calif., and Boca Raton, Fla.-
based Foreclosure.com can be explained by how they count foreclosures.
Foreclosure.com said its data only include properties in foreclosure that have been taken
over by lenders, while RealtyTrac's data include homes that are in stages of pre-
foreclosures.
RealtyTrac showed 6,079 homes in Colorado are in some stage of foreclosure, more than
150 percent higher than a year ago and about 60 percent higher than July.
Foreclosure.com showed 5,577 active foreclosures in Colorado, almost a 5 percent drop
from July and about an 11 percent drop from August 2005.
Both reports agree that Colorado has the highest foreclosure rate in the nation, a dubious
distinction it has held the entire year.�
| Loveland Daily Reporter-Herald Editorial Improperly Tries To Blame High Foreclosure Rates on Faulty Statistics |
| "Both reports agree that Colorado has the highest foreclosure rate in the nation....." Rocky Mountain News |
