Colorado foreclosure activity is poised to drop this year from 2007, according to a report released today by the state.

There were 14 percent fewer completed foreclosures in the first nine months of this year, compared with the same period last year, according to the report by the Colorado Department of Local Affairs – Division of Housing.

And there were 9 percent fewer completed foreclosures during the third quarter this year than during the third quarter of 2007. However, completed foreclosures jumped 66 percent from the second quarter to the third quarter.

There were 6,454 completed foreclosures during the third quarter, bringing the total for the first three quarters of the year to 16,246. There were 19,025 completed foreclosures during the same period last year. There were 25,320 completed foreclosures during the full year of 2007, which was a 40 percent increase over 2006. The division is predicting a 13 percent decrease for foreclosures in 2008 from 2007.

"2006 and 2007 saw big increases in foreclosure filings of 30 and 40 percent, so a 14 percent decrease so far this year makes us cautiously optimistic about the future," said Kathi Williams, director of the Colorado Division of Housing. "There are still many reasons for concern, but this is good news."

While the report expects the statewide total for foreclosures to be down this year, the report shows some counties did experience more foreclosures when compared with last year.

In year-over-year comparisons of third quarters in 2007 and 2008, Boulder, Broomfield, Douglas, El Paso, Jefferson, and Larimer counties all reported increases.

El Paso topped the list with a 26 percent increase in foreclosures over the third quarter of last year.

Denver County reported the largest decrease, 26 percent, compared with the third quarter of last year. Adams County reported a 19 percent drop, and Weld County reported a 20 percent drop.

In recent years, Weld, Denver and Adams counties have experienced some of the highest rates of foreclosure activity and growth rates.

Observers note that there may be several reasons for the drop in the rate of growth in foreclosure filings.

The Colorado Foreclosure Hotline (1-877-601-HOPE) has been in place for two years, Williams said, and nearly 4,000 households have avoided foreclosure in 2008 through the hot line and its member agencies.

"If those 4,000 households had foreclosed, we'd be looking at an increase instead of a decrease in foreclosures," she said.

Changes in Colorado law that took effect Jan. 1 created a transitional period during March and April and limited foreclosure sales at auction.

This drove down totals in the first and second quarters, affecting the annual statistics and creating the false impression that many fewer borrowers were defaulting. A law that took effect in August also affected foreclosure-filing statistics in similar ways.

Even as growth rates moderate in many areas, high foreclosure rates persist.

The highest was in Adams County, with a rate of one in every 58 households. In Denver County there was one filing for every 73 households. Weld County had one for every 74 households. Pueblo County showed one in every 102 households.

The latest data reinforce claims that high foreclosure rates are somewhat restricted to the Front Range and eastern Colorado.

Counties in western Colorado experienced much lower rates. Mesa County reported one filing for every 756 households. La Plata County had one for every 992 households. And Garfield County reported one for every 5,079 households.

The Division of Housing collects foreclosure data from public trustees on a quarterly basis. The report, and past foreclosure reports, can be accessed online at the Colorado Division of Housing Web site: http://dola.colorado.gov/cdh/.