Denver Real Estate Blog

Denver’s Commercial Real-Estate Market is Hot!

Jeffery McClintock — Thu, 15 May 2008 06:17:04 +0000

DENVER- Even as the national economy appears to spiral downward, a number of companies are choosing Denver to expand their operations, bolstering the region’s commercial real-estate market. At least three national engineering companies are considering adding staff and increasing their space here.

Denver-based Utility Engineering, which occupies 70,000 square feet in the Park Central Building downtown, needs another 9,000 square feet of space.

Black & Veatch Corp., which is in 35,000 square feet at the Cascades office building in Greenwood Plaza, plans to expand by 6,000 square feet. It added 5,000 square feet of space last year.

URS Corp., which acquired Washington Group this year, is in the process of developing its strategic plan, said Rob Link, executive vice president and branch manager of Studley, which is representing all three engineering firms.

URS has 140,000 square feet of space in the southeast market and several downtown locations that are 20,000 square feet each. Washington Group has more than 250,000 square feet in the southeast office market.

While the company has not determined what course it will take, if it decides to consolidate its offices, it would need about 400,000 square feet.

“They all have a lot of business they’re going after,” Link said. “In order to be able to grow like that, you need the contracts in place. You’ve got to have the people.”

The companies are working on large-scale infrastructure projects, such as roads, dams and nuclear power plants.

Engineering firms aren’t the only companies looking for large blocks of space.

“We have an unprecedented number of large transactions floating around the market,” said Bob Whittelsey, principal with commercial brokerage Colliers Bennett & Kahnweiler Inc.

He said the area appears to be an anomaly, compared with the markets it competes with.

“We’re still seeing job growth and activity in the market,” Whittelsey said. “I think we’re on the radar screens of companies divesting of expensive real-estate and employment markets.”

Many service providers to the thriving energy sector also are looking to expand, said Anthony Albanese, an associate and office tenant representative at CB Richard Ellis.

“Law firms especially are looking to expand,” he said. “They’re hiring more lawyers to do land leases. There’s not a lot of huge expansions, but there’s a lot of individual one-off growth.”

Colorado hits the top 10 list for mortgage fraud

Jeffery McClintock — Thu, 15 May 2008 06:09:38 +0000

Colorado, by contrast, appears to have made the list largely because of fraud that occurred before the state began its crackdown on the “bad actors” in the business and before it launched aggressive education and counseling programs, such as the foreclosure hotline. For years, Colorado and Alaska were the only states that did not license mortgage brokers. Now, both states license them. Other new laws to attack mortgage fraud and deceptive lending practices also are on the books in Colorado.

In 2006, Colorado was off the top-10 list after being on it in 2004 and 2005. Two years ago, Colorado was ranked by the FBI as one of nine states “significantly affected by mortgage fraud.” Colorado is back on a top-10 list it never wanted to be on. The FBI ranked Colorado No. 9 as a mortgage fraud “hot spot” in 2007.

Common mortgage-fraud schemes and steps to avoid them:

* Offers to “fix” or “stop” your foreclosure.

* Claims of “foreclosure solutions,” or to “cure” your default or “repair” your credit.

* A “guaranteed buyout” or quick “cash for your home.”

* Sale and lease-back schemes, in which you sell your home for a fraction of its value and then rent until you can afford to buy it back.

* At the first sign you are not going to be able to make a mortgage payment, call your lender. Also, call the Colorado Foreclosure Hotline, 1-877-601-HOPE.

* Contact a HUD-approved housing counselor or a private attorney.

FBI’s top 10 hot spots for mortgage fraud in 2007

1 Florida

2 Georgia

3 Michigan

4 California

5 Illinois

6 Ohio

7 Texas

8 New York

9 Colorado

10 Minnesota

Foreclosed Homes does Impact Neighborhoods

Jeffery McClintock — Wed, 14 May 2008 13:35:02 +0000

Denver, like the rest of the country, has seen a recent spike in the number of foreclosed homes.

Foreclosed homes can be problematic for neighbors in the area. Unlike other empty homes, which are usually under the watchful eye of the owners or a real estate agent, foreclosed homes are often left unattended for months — from before a bank takes ownership of the house until after it’s sold. Because the widespread foreclosure problem arose from mortgage defaults, it affects all types of neighborhoods — from the lowest to the highest income areas.

There is some evidence that as foreclosures mount in a community, the community’s crime rate may rise. Even if crime doesn’t increase, foreclosures usually present a quality-of-life issue for neighbors. Consider the following.

Break-Ins, Squatters and Partiers
Criminals may view a vacant home (or business) as a ripe opportunity to steal copper pipe, fixtures or appliances. Homeless persons or runaways may seek shelter in the buildings, and in colder weather may even start fires inside. Squatters may attempt to rig wiring to get power to the house; doing so is dangerous and can spark an electrical fire. The homes may be appealing to others as a secret place to party. And in some cases, meth labs may spring up in vacant houses. Over time, vandalism (broken windows, graffiti) may occur.

Other Quality-of-Life Issues
Most foreclosed homes in Jefferson County are not plagued by crime. But many undergo a transformation after being vacated. When a foreclosed property is not maintained, it can become an eyesore, affecting nearby property values. Grass and weeds grow amok. Newspapers, notices and mail pile up. Mosquitoes multiply near standing water (swimming pools or fountains).

Resource

A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

REAL ESTATE

If you would like additional information about the Denver Real Estate area in Denver Colorado as well as anywhere in Denver Metro Area contact us at 1-800-791-3990 ext 232.

Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions. Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 individual real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County.

Low Interest Rate Seekers Beware

Jeffery McClintock — Mon, 12 May 2008 14:20:27 +0000

Are your Considering Re-Financing?

With home mortgage interest rates as low as they are and with all the smart people refinancing and buying news homes it is still not enough for some mortgage lenders to make a decent living.

Some unscrupulous lenders are advertising ridiculously low interest rats but failing to really explain why the mortgage interest rate is so low. Even worse than that are mortgage lenders who do not explain the long term consequences if someone bites the bait of the initial low interest rate and in the long run ends up paying more for their mortgage than if they would have kept what they originally had intact.

There are a couple of nationwide mortgage lenders that offer very low interest rate mortgage programs. In fact the rates are in the low five percentage range. Sounds great so far! But why would a lender offer you a mortgage program that is so far below the average thirty-year mortgage rate. They know that most borrowers will keep their mortgage for an average of five years. And second that very low interest rate is for only the first month or two. Then you have to add on the lenders profit and the low rate is now in the same ballpark as a conventional mortgage. So I would consider the first payment or two a way to buy your business and nothing much more than that. The lender will make their profit over time and you cannot afford to go out and refinance a couple of times a year.

The second way some lenders get you into a mortgage is with something known as Negative Amortization. This program allows the borrower to pay less than a full payment. Each month that this is done the overall amount you owe the lender increases so what ever you have in equity could disappear. So if you want to see your equity decrease this is not a bad program.

The next way to get a low interest rate is to buy down your rate. This is a way for you to get as much as two to three percentage points less up from and after a two or three year period your actual interest rate is higher than what you could have paid in the beginning. This program will allow for a buyer to qualify for a much higher loan amount as the mortgage payment is based on the initial interest rate.

So if you are in the market to buy a new home or refinance your current mortgage you need to sit down and hear about these different programs.

Can a Builder Require Me to use the Builders Preferred Lender

Real Estate Experience Should Not Be Defined by Years in the Business

Mortgage Resource

Dawn-Renee Mack has been a Colorado mortgage professional for nearly a decade. She received formal education at Bradley University in Illinois. Today she leads an experienced lending team, which includes not only 30 years of combined mortgage experience but vast accounting experience as well, Mack firmly believes with each loan she originates for clients, to treat your family’s home mortgage as if it were her own. She looks at every situation with an eye for what is best in the present and what will also help you accomplish your long-term financial goals.

Dawn-Renee’s lending team firmly believes that client education is vital to a homeowner’s financial success. Through education and excellent service, she elevates what is often perceived as a frustrating and confusing process to a smooth, seamless home-buying experience. “I think the most important aspect of my job besides the planning of my clients’ mortgage future is to make sure they are educated about the process itself. Familiarity with what to expect allows a homeowner to relax, and that is my ultimate goal. Buying a house should be a positive experience!” Focusing solely on mortgages for her entire financial career has allowed Dawn-Renee to become an expert in her field. She knows the ins and outs of widely divergent programs, ensuring that all of her clients get the best possible loan, regardless of their specific situation.
Dawn-Renee Mack has access to over 350 investors and thousands of loan programs is invaluable to my philosophy that I will find the loan that fits my client, not force my client into a loan box that is not in their best interest.” says Mack. If you have any questions regarding the current mortgage market, feel you could benefit from an evaluation of your current mortgage loan and or any loan program someone else has proposed and want to make sure it’s really something you should be involved in you can reach her directly at 303-691-5058.

Buying Real Estate In Denver

Jeffery McClintock — Sun, 11 May 2008 17:33:04 +0000

DENVER- Whether you are buying your first home, or your fourth, there are five basic things you need to know before you venture into the marketplace.

Know your budget - A thorough financial analysis is crucial. It will determine many of the parameters for your property search. It will help you make the most of your money, while preventing you from considering homes that are beyond your capabilities. Nothing is worse than seeing a home you love, and then realizing it is not financially feasible. Make an appointment with a lender, and they will help you determine an appropriate loan amount, and purchase price.

Know what you want - Only the most fortunate buyers find properties with every item on their wish list. Instead of searching for the perfect home, prioritize your wants, and needs. Things to consider include location, type of property, schools, square footage, amenities, and number of bedrooms and baths. If you know what you want, you will be ready to recognize the right property when you see it.

Know the steps - Increase your comfort level, by learning as much as you can about the home purchase process. Find out about the components of the purchase contract. Research the different types of inspections needed, and what is involved in getting a mortgage loan. The better you understand the process, the less anxiety you will feel during the transaction.

Know the marketplace - Knowing the market conditions will help you set the right expectations. For instance, if it is a seller’s market you may have to make an offer without certain contingencies. If it is a buyer’s market, you may be able to offer considerably less than the asking price. You should also make a point to follow interest rates, and learn about different mortgage products.

Know who can help - Find an experienced real estate professional, who has worked in your market for a number of years. They will know the local inventory, as well as the current market conditions. Make sure you feel comfortable with your Realtor, and make sure they will be personally handling your complete transaction.

I wanted to introduce you to other articles on the blog because I thought you might benefit from the articles and would find them informative. Here is a sample of some of the articles you will find in our blog. I designed RealEstateColorado.net to not only be a place to search for homes but also a resource.

Real Estate Experience Should Not Be Defined by Years in the Business

Can a Builder Require Me to use the Builders Preferred Lender

Are Home Inspections Simply a Waste Money?

Resource

A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

REAL ESTATE

If you would like additional information about the Denver Real Estate area in Denver Colorado as well as anywhere in Denver Metro Area contact us at 1-800-791-3990 ext 232.

Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions. Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 individual real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County.

What’s the Hottest Zip Code In Metro Denver?

Jeffery McClintock — Sun, 11 May 2008 17:17:08 +0000

The hottest Real Estate Zip Code in the Denver Colorado Housing Market is 80121.

Home prices in the Denver area showed the greatest appreciation during the first quarter in the 80121 ZIP code, which includes parts of Cherry Hills Village, Greenwood Village and Centennial.

The median price of a home in 80121 jumped 26.3 percent to $310,000 from $245,500 a year earlier, according to data compiled by La Jolla, Calif.-based DataQuick, which tracks home prices by ZIP code.
Denver Metro Home Zip Code 80121 has a wide variety of home prices. At least 143 unsold single-family homes are in that ZIP code, ranging in price from $6.2 million to around $150,000.

For the median price of $310,000, you can buy a four-bedroom, four-bath house with 3,057 square feet on a quarter-acre lot. The report indicates that most of the appreciation is taking place in houses priced from the $200,000s to the $300,000s.

The No. 2 market for appreciation was 80212 in northwest Denver, which showed an 18.5 percent rise. It includes neighborhoods such as Sloan’s Lake, West Highland and Berkeley.

THE REST OF THE TOP FIVE

2. Denver 80212 UP 18.5%

3. Golden 80403 UP 15.4%

4. Denver 80215 UP 14.6%

5. Englewood 80111 UP 13.2%

THE REST OF THE BOTTOM 5

5. Aurora 80011 DOWN 22.5%

4. Denver 80239 DOWN 23.3%

3. Denver 80219 DOWN 25%

2. Aurora 80010 DOWN 26.5%

Resource
A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

REAL ESTATE If you would like additional information about the Denver Real Estate area in Denver Colorado as well as anywhere in Denver Metro Area contact us at 1-800-791-3990 ext 232.Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.

Denver New Home area Sales saw 31% drop in 2007; no ‘08 relief seen

Jeffery McClintock — Sat, 03 May 2008 13:04:49 +0000

DENVER - The slump in the new-home sales market in the Denver area continues. Experts predict that new-home sales will drop another 10 percent this year, on top of a 31 percent drop in 2007. A report by the Genesis Group, which tracks real estate along the Front Range, found only 9,698 new homes were sold last year, down from 14,108 in 2006. Sales activity in 2007 was the lowest since 1994, when 9,590 homes were sold. The market peaked in 2000 with 19,432 new-home sales. “Builders have to ask themselves, why are they building homes if no one is buying?”

An influential economist who long predicted the bursting of the housing market bubble cautioned Tuesday that the slump in the U.S. housing market could cause prices to fall more than they did in the Great Depression, and bailouts would be needed so millions don’t lose their homes.

Yale University economist Robert Shiller, pioneer of the widely watched Standard & Poor’s/Case-Shiller home price index, said there’s a good chance housing prices will fall further than the 30 percent drop in the historic Depression of the 1930s. Home prices nationwide already have dropped 15 percent since their peak in 2006, he said.

Historical Housing Statistics for Colorado

Real Estate Experience Should Not Be Defined by Years in the Business

Resource

A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

REAL ESTATE

If you would like additional information about the Denver Real Estate area in Denver Colorado as well as anywhere in Denver Metro Area contact us at 1-800-791-3990 ext 232.

Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.

Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 individual real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County

Denver ’s unsold home inventory falls

Jeffery McClintock — Fri, 25 Apr 2008 15:06:17 +0000

Fewer homes were on the market in Denver last month than in March 2007, some possible good news for the local housing market.
Of 28 major metro areas in the country, Denver was among only five with a year-over-year decline in such inventory, according to a report in The Wall Street Journal.
The drop wasn’t huge, 3.5 percent. But it ranked Denver third after Boston, which was down 10.9 percent and Dallas, down 4.4 percent. Atlanta and Chicago had smaller declines.
Unsold home inventories are one barometer of supply and demand in a market. Falling inventories can signal that a market may be bottoming or that frustrated sellers have pulled their homes from the market.

The 6.4 months needed to clear Denver’s overhang of unsold homes at the current rate of sales also was the lowest among metro areas.
In another positive sign, Forbes ranked Denver as the seventh-best market among metro areas for home sellers. Forbes cited a nearly 50 percent drop in new home construction, a 20 percent decline in the number of vacant homes and a 2 percent rise in new jobs.

Resource

A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

REAL ESTATE

If you would like additional information about the Denver Real Estate area in Denver Colorado as well as anywhere in Denver Metro Area contact us at 1-800-791-3990 ext 232.

Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.

Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 individual real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County

Colorado successful in attracting new residents

Jeffery McClintock — Fri, 25 Apr 2008 15:05:03 +0000

Colorado ranks among the top magnet states for 2007, drawing more residents than it loses to other states.

Allied Van Lines, which compiles the report based on its internal shipment data, said Colorado was No. 4 with a net relocation gain of 851.

Allied Van Lines counted 2,173 moves from Colorado but 3,024 moves into the state.

Texas was in first place for the third consecutive year, with a net gain of 2,041. North Carolina was second, also for the third year in a row, with 1,363. Georgia was third, with a gain of 942.

States on the other end of the spectrum where more residents are moving out than in are Michigan, New Jersey, Illinois, Florida and Pennsylvania.
Sales of existing homes fall again

Sales of existing homes fell in March, the seventh drop in eight months.

The median price of a home was down compared with a year ago, and some economists predicted home prices could keep falling for many more months - given all the troubles weighing on housing, from a severe credit crunch to a rising tide of foreclosures.

The National Association of Realtors reported Tuesday that sales of existing single-family homes and condominiums dropped by 2 percent in March to a seasonally adjusted annual rate of 4.93 million units.

The median price of a home sold last month was $200,700, a decline of 7.7 percent from a year ago and the seventh consecutive year-over-year price drop. It was also the second-biggest decline following a record 8.4 percent drop in February. These records go back to 1999.

In the Denver area, the median price of a single-family home in March was $224,900, down 6.3 percent from $240,000 in March 2007. The number of closings fell by 4.1 percent from a year earlier.

Resource

A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

REAL ESTATE

If you would like additional information about the Denver Real Estate area in Denver Colorado as well as anywhere in Denver Metro Area contact us at 1-800-791-3990 ext 232.

Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.

Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 individual real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County

Colorado ranked 10th with the highest per-capita income in 2007

Jeffery McClintock — Fri, 25 Apr 2008 15:04:11 +0000

Colorado ranked 10th in the government’s ranking of states with the highest per-capita income in 2007, according to preliminary estimates released Wednesday by the U.S. Bureau of Economic Analysis.
Per-capita personal income rose 3.9 percent in Colorado in 2007, to $41,042, according to the BEA.

Colorado ranked 10th on the list in 2006, according to revised BEA data. But personal income grew more slowly in Colorado than elsewhere. The state’s 3.9 percent growth rate put Colorado 45th among the 50 states in 2007 in terms of growth. In 2006, per-capital personal income growth was 5 percent, putting Colorado in 31st place.
Colorado’s population increased 2 percent in 2007, the same growth rate as in 2006, the BEA said. Personal income is defined as income received from all sources, including net earnings, rental income, dividend and interest income.

Resource

A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding their rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

REAL ESTATE

If you would like additional information about the Denver Real Estate area in Denver Colorado as well as anywhere in Denver Metro Area contact us at 1-800-791-3990 ext 232.

Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.

Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 individual real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County

Colorado Property Owners Facing Foreclosure to Receive Counseling

Jeffery McClintock — Tue, 22 Apr 2008 02:09:56 +0000

DENVER, Colorado ― State and federal officials on Monday recommended foreclosure counseling to homeowners hit hard by the mortgage foreclosure crisis following a study that showed some areas were targeted for risky, subprime loans.

Gov. Bill Ritter said 11,633 property owners in seven zip codes in Aurora, Colorado Springs, Denver, Greeley and Parker were in the first stages of foreclosure on properties worth $2.2 billion. The survey by the Colorado Housing and Finance Authority covered Nov. 27 to April 4.

Ritter proclaimed this week foreclosure prevention awareness week and said notices will be mailed to properties in those areas telling them their rights and the availability of free counseling from the state.

“Home ownership is a cornerstone in achieving the American Dream. Unfortunately, too many Coloradans are finding that piece of their dream slipping from their hands due to foreclosure,” Ritter said.

Ritter said the state set up a special telephone hot line for people in trouble.

Sen. Ken Salazar, D-Colo., said 80 percent of property owners in trouble were able to avoid foreclosure after they received counseling.

“The housing crisis is one of the root causes of our nation’s broader economic slowdown. All across Colorado and the nation, families are feeling the pain of the housing crisis and communities are being crippled by the ripple effect of foreclosures,” Salazar said.

He said about 50,000 more homes are expected to be in foreclosure by the end of the year and 750,000 other property owners will see their property values decline because of their neighbors.

Affected zip codes include 80010 and 80017 in Aurora, 80916 in Colorado Springs, 80204 and 80239 in Denver, 80631 in Greeley and 80134 in Parker.

Subpoenas issued in Colorado real estate probe

Jeffery McClintock — Sun, 20 Apr 2008 15:36:13 +0000

Title companies are forced to pay kickbacks for referrals under the guise of marketing agreements, the state says.
The state is investigating whether nine Colorado real estate brokerages required title companies to pay up to $1 million each for referrals from their agents.

The Colorado Division of Real Estate on Monday sent subpoenas via certified mail to the brokerages, as well as to a California company.

The agents received incentives from their companies in exchange for referring their clients to the title companies that make payments, said Erin Toll, director of the Division of Real Estate.

“These types of payments to real estate settlement providers are bad for consumers because they artificially inflate the price of title insurance,” Toll said. “I believe this is one of the reasons that title insurance rates have not decreased even though title searches are nearly 100 percent electronically performed.”

Title insurance, which typically costs home sellers between $500 and $1,000, protects lenders and owners against losses from property-ownership disputes.

Toll said the alleged kickback scheme comes under the guise of “marketing agreements.”

“They’re saying: You can have exclusive rights to all of our work if you pay me money and we call it marketing,” she said.

In her previous position as the state’s deputy insurance commissioner, Toll gained national attention when she launched a broad-reaching investigation of kickback arrangements in the title-insurance industry.

“This is a different form of the same thing,” Toll said. “It’s illegal to give remuneration in any form for referral of business tied to a federally related loan, which most mortgages are. It’s insidious. It’s everywhere.”

Feds also probed referrals

The current investigation comes more than two years after Toll prompted the federal government to mount an aggressive campaign to stamp out illegal referral fees that were in violation of the Real Estate Settlement Procedures Act.

The U.S. Housing and Urban Development Department settled at least a dozen kickback cases in 2005.

Some of the state’s best-known real estate firms are among those being investigated. They are Re/Max International Inc. in Greenwood Village; Slifer Smith & Frampton in Avon; Fuller Towne & Country Properties in Greenwood Village; Coldwell Banker Residential Brokerage in Denver; Keller Williams Real Estate LLC in Littleton; Keller Williams Executives Realty in Highlands Ranch; Re/Max Properties Inc. in Colorado Springs; McGinnis GMAC Real Estate in Colorado Springs; and Home Real Estate in Centennial. The California company is First American Residential Group Inc., a Santa Ana title insurance company.

Many of the brokerages said Thursday that they had not received a subpoena.

Heather Parness, broker of record for Fuller, and Brad Smith, owner and employing broker of Home Real Estate, said they do not have marketing agreements with any real estate settlement service providers.

Brokerage: Tight, clean ship

Joe Clement of Re/Max Properties Inc. in Colorado Springs said he has an agreement with Wells Fargo for mortgage business. He leases office space to North American Title and Security Title but said he does not have agreements with either company.

“We run a tight, clean ship,” Clement said. “I like to stay out of jail. It’s tough enough out there.”

Julie Bergsten, vice president of Slifer Smith & Frampton, declined to comment.

Shaun White of Re/Max International said the company handles franchising, not real estate transactions.

“We’ll have to get our hands on the subpoena and see what we have to say about it,” he said.

The remaining brokerages did not return phone calls Thursday.

Jerry Spaeth, president of First Integrity Title in Denver, said he has not been asked for money in exchange for business.

“If it is happening, it would explain a lot of the loyalty we run into,” he said. “Generally it’s hard to get Realtors to switch. They tend to be very loyal, more so than mortgage brokers and mortgage lenders. The title companies in town seem to have a very strong hold on some of the larger real estate brokerages.”

The Division of Real Estate wants the brokerages to provide the marketing agreements they have with all real estate settlement service providers; agreements where they give something of value to a provider or the provider is giving them something of value; information on how much business was given to a provider; and details on compensation paid.

Since taking over the Division of Real Estate in 2006, Toll also has launched investigations into appraisers inflating the values of conservation easements and mortgage brokers committing mortgage fraud.