The market for Colorado Springs foreclosures is seeing increased competition – this time from out of state investors according to the Colorado Springs Business Journal.
While this increased activity is happening at the local sales level (prior to a home being listed to the general public), the increase in sales is having a negative effect on the overall inventory. We’ve seen the foreclosure market tighten up over the past year and it remains to be seen just how this increased competition will impact the overall market for Colorado Springs Foreclosures.
Some Key Bits from the Colorado Springs Business Journal:
Local investors are now competing against institutional money at the El Paso County Public Trustee’s foreclosure sales.
Two out-of-state investors have been bidding on foreclosures at the local sales. Colony American Homes, an Arizona-based unit of Colony Capital LLC, headquartered in Santa Monica, Calif., buys homes and rents them out while they appreciate. Granite Ranch Opportunities, a California company that remodels homes and resells them, made a splash when it bought nine properties at the Dec. 6 county foreclosure sale.
With more activity at the auctions, it’s not surprising that a greater percentage of foreclosure sales have gone to investors. In a normal market, about 5 percent of sales go to investors, Mowle said, and the rest are sold back to the bank that previously loaned on them.
In October, nearly 10 percent of local foreclosure sales went to investors. In November and December, more than 15 percent went to investors. In January and the first two weeks of February, more than 20 percent sold to investors.
Read the entire article. It’s interesting to see how a few investors can impact the market. It also can give you a good overview of how the entire foreclosure process works.
We are still finding some good deals for our clients on HUD homes and Foreclosures, but you need to be ready and able to move quickly and make strong bids. If you would like to learn more about the process, call our team at 719-641-4209.
A reminder, if you are an investor, don’t rule out tradition Colorado Springs homes (non-foreclosure / HUD). There are some good deals on regular sales and Short Sales, you just need the right agent finding you the best deals.