Northern Colorado Short Sale Opportunities

Fort Collins currently has 40 short sale homes priced under $250,000 active on the market.  So what is a short sale?  A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount. For example: A homeowner, who is facing foreclosure, has an existing first mortgage of $290,000. You write an offer to the lender for $210,000, which is accepted as full payment for the loan. This is a short sale. Why are they willing to take such a discount? Several reasons. First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity where they can sell the property without a huge loss, they will do it. Secondly, lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking the discount beforehand and be finished with the headache of it all.

Northern Colorado Statistics:

• Unemployment rate of 3.2% is still below the state of Colorado rate of 4.3% and is well below the national average of 4.8%.
• Foreclosures are up 23% from 2006 to 2007, and is rising for 2008 · Building permits are down 28% from a year ago.
• Household income growth averaged 5.5 percent for the last five years and last year's cost of living was 9 percent below the national average
• With an educated workforce, solid labor supply, steady job growth and a cost of living that's below the national average, the Fort Collins/Loveland area ranked third on Forbes' 2008 Top 10 Places for Business and Careers
• The overall rental market has strengthened in 2007.
• Fort Collins sat comfortably with a 4.4 percent vacancy rate in the fourth quarter of 2007, close to equilibrium at 5 percent and faring better than the overall composite rate for the state at 8.6 percent.
• Fort Collins typically has a lower vacancy rate than average due to the CSU college student population
• With the tighter rental market, rents have also increased.
• Another factor is that the recent increased foreclosure rate has created a larger tenant pool.

If you would like to be contacted about our Northern Colorado short sale opportunities please provide your information below and we'll expedite your information package to you.