Colorado Springs is one of the best real estate investment markets in the country with an average appreciation of almost 4% since 1996 and that includes the housing crash. Compare our market to the other major markets that had big upswings and huge downswings and you see why Colorado Springs is a great place to buy real estate. It is a great place to live!  See this amazing chart for proof

https://docs.google.com/open?id=0B909Rpf8kcqNYzc0ZTRjN2ItZmQ4YS00YjNhLTg0ZDItMjUyNTUyMWVkNzNj

Nationwide mortgage Delinquencies Falling but foreclosures are up.  In Colorado Springs foreclosures are falling.   Lender Processing Services released mortgage data Tuesday that showed mortgage delinquencies are continuing to decline.  They are nearly 30% below the peak delinquency rate of January 2010.  However, Loans in the foreclosure stage are rising.  They are now 4.29% of all mortgages, which is an all time high.  For me the most telling number is the average days delinquent for loans in foreclosure.  It is a new all time high at 631 days since last payment.  Homes are sitting in foreclosure longer, often they are sitting vacant.  In Colorado Springs, CO we are seeing the trend of decreased foreclosures continue.  In November 2011 there were 289 new foreclosure starts, in October this year there were 338. Year to date new foreclosure starts are down from last year's pace by 27%!!  November sales figures for Colorado Spring CO, according to the Pikes Peak association of Realtors show sales up and prices are down.  Sales were up 19.2% from November 2010 and the average price was down 5.8%.  This is a trend we have been seeing for most of the year.  Inventory remains fairly low compared to recent years and down 22% from November 2010.  Distressed homes made up 14.7% of all homes sold in Colorado Springs last month, but not everybody reports if the home was distressed so that number is likely low.  It's a great time to buy or move up to a bigger home in Colorado Springs with prices down and mortgage rates low.

According to the U.S. Commerce department housing starts nationwide rose 15 percent to a seasonally adjusted annual rate of 658,000 units in September.  That makes September the best month since April 2010.  Much of the new housing programs are multi-family units according to the National Association of Home Builders.  (NAHB) 

In Colorado Springs, CO  we are seeing similar trends.  There are some significant new multi-family developments starting as there has been a shortage of apartments available.  Rental homes are filling vacancies quickly , and getting higher rents than in previous years.  All the property managers in Colorado Springs that I talk to echo this sentiment. 

We also continue to see a reduction in the amount of single family homes for sale and continued pricing pressure. Colorado Springs had 3,959 homes for sale in Oct 2011,  we had 5,124 for sale in Oct 2010.  The average price in Oct 2011 was $221,534, in Oct 2010 it was $240,326.  This according to the Pikes Peak Association of Realtors

In Colorado Springs foreclosures and foreclosures starts were both up slightly in October, this according to the El Paso County Public trustee.  Overall foreclosures are down from last year and 2009, but they are still significant and with fewer buyers they are still a large part of the market.  As of end of October this year we have had 2,953 foreclosure starts.  Year to date this time 2010 was 4,828.

So what can we take from all these numbers:  stricter lending standards and so many people with ruined credit are keeping the amount  of bona-fide home buyers in the market very low.  Foreclosures and short sales are still pressuring prices.  Even as housing inventory falls, prices also continue to fall.  The opposite of simple supply and demand and a tribute to the powerful effect of distressed housing on the overall market.    I'll say it again, the housing market wants to recover but it is fighting two 300lb gorillas named Distressed Housing and Reformed Lending.

September 2011 Colorado Springs CO: sales of single family homes were down 20% over Aug  2011 and up 11% over September 2010.  The median sales price was down 2% over August 2011 at $187,250 and down 4% compared to September 2010.  September  inventory was down 7% compared to August and down 24% compared to September 2010.

  These numbers are following the recent trends of reduction in inventory, increased homes sales, with lower prices.  Pricing pressure seems to be the stubborn indictor that won't turn the corner.  Pricing pressures are still pervasive in the market and stemming from things like distressed properties and an overall consumer sentiment that homes are at 'bargain prices'.   Rates are ridiculously low on home mortgages helping to fuel the increase in sales.

Distressed properties (homes that are bank owned or short sales) made up 15% of the market officially in September.  That # is likely much higher but not everybody reports the data   

Hope now reported that loan servicers completed about 56,000 loan modifications in the month of August and most of them included reduced principle and interest payments.  This is similar to figures last month.  However foreclosure stats increased 18 percent from July to August nationwide.  In Colorado Springs, CO foreclosure starts were up 29% over last month, according to the El Paso County public trustee.

I just saw 8 REO homes in the Colorado Springs area all under 100K!!! We have distressed properties in every zip code from 80906 to 80919.  Rates are low VA just reduced their funding fees.  Don't forget get a free and current list of foreclosure homes by clicking the scrolling box on the bottom of my web site

The Department of Veteran Affairs (VA) recently announced they are reducing their funding fee on VA loans from 2.15% to 1.40% with zero down, with historically low interest rates, this could be the lowest cost loan you will see in your lifetime. Ask me for a list of VA eligible homes to buy in Colorado Springs

More interesting foreclosure facts from LPS Applied Analytics:Including Colorado Springs CO and all of America

July foreclosure starts were 207,223 down from 279,838 in July 2010

In July 2011, 4.1 million loans were 90+ days delinquent or in foreclosure, of those 1.9 million were not in foreclosure yet.  These numbers are down slightly from Jan.  2011

Stats for El Paso County: (Colorado Springs area) from the El Paso County public trustee

Aug 2011 we had 2,673 foreclosures,  compared to 3,177 in Aug 2010

Year to date we have had 21,626 foreclosures compared to 20,940 last year to date.

New foreclosure starts are down 334 in Aug 2011 compared to 427 Aug 2010

Year to date foreclosure starts are down 2,315 vs. 3,200 last year to date - that is a big drop on foreclosure starts.  We will have to wait and see if the drop is truly a sign that less people are losing their homes or if more people are negotiating loan modification that may or may not work....  Based on all the signs there does appear to be a real trend towards less foreclosures here in Colorado Springs this year.  Combine that with the recent trend of less overall housing inventory and increased sales and I think we are getting to a point where the housing market may start to be healthier.  I think it will be a slow recovery but a recovery nonetheless.  Great time to buy or move up in to that dream home...

In Colorado Springs CO, home sales in August of 2011 increased 20% over August 2010.  This year we sold 832 units in the month of August.  Prices, however, continue their downward slide. Prices were down 10% compared to last year. This is the 6th month in a row of pricing declines.  Distressed properties (short sales and Bank owned homes) were 16% of the market.  That number is likely 5-10% low as not all Realtors disclose if a sale was distressed. August inventory of single family homes was 4,470 units. Which is a 5 1/2 month supply of inventory and down 23% over last year.  Bottom line sales up inventory down, but prices also down.  Goes against typical supply and demand models, but housing is not a typical market right now.  Distressed properties and government regulation of lending has put pressure on pricing.  Less buyers can get financing and distressed properties are priced aggressively.

When I show buyer's in the Colorado Springs, CO area foreclosure and short sales homes for sale I notice some similar reactions. Often for owner occupied buyers looking for a deal they are not prepared for the condition of these homes.  The odor can be quite a shock to the olfactory senses when you first walk in.  I try to remember to tell clients "don't open the fridge"  For some reason people looking at homes always instinctively open the refrigerator?    This can be a dangerous habit when looking at distressed properties where the power may be off, the food may be spoiled.....  You get the idea.  Let me shed some light on why these homes often show like they have been abandoned for years...wait for it....because they have.  Today Lender Processing Services (LPS) announced the average mortgage loan in foreclosure has been delinquent for 599 days.  That is the average of 2.2 million loans of those 800,000 have not made a payment in over a year.   As you can imagine many of these people have moved on, a long time ago.  Their home may have been waiting for a personal property evictions, a loan modification that did not materialize, or a bank stalling waiting for a better market.  Whatever the cause the result is often a vacant home that has sat vacant for a very long time.  Then harry homeowner comes along and almost loses his breakfast at the front door. 

Standard and Poor's reported that home prices increased 3.6% over the second quarter of this year.  That includes short sales and foreclosures.  This is welcome after a dismal first quarter but still down 5.9% compared to the second quarter last year.  Overall we are at home pricing levels of 2003.  It's a great time to buy in the Colorado Springs area

July home sales in Colorado Springs, CO  were UP 11.9% from July of 2010, at 798 listings sold. Prices were still soft, with the average and the median both down 5.2% at $224,776 for the average, and the median (1/2 above, 1/2 below) at $198,950.. The inventory of unsold homes dropped 20.9% to 4,710 homes, which is less than a 6 month supply, and thought by many to be a sign of a 'normal' real estate market. This level has remained stable for several months now, indicating supply and demand are roughly in balance. The Selling Price to List Price Ratio was 96.7%, well in line with longer term averages. The percentage of homes disclosed as distressed was 17.4%, or 139 homes. Note: This particular figure is likely under-reported because of agents not wishing to disclose when a home is subject to short sale approval, in hopes of improving showing traffic.

May home sales in Colorado Springs, CO  were down 9.8% from May of 2010. Prices were also down, with the average price of a sold home in Colorado Springs down 8.4% at  $213,211, and the median (1/2 above, 1/2 below) down 4.9% at $185,000.  The inventory of unsold homes in Colorado Springs dropped 15.6% to 4,686 homes, which is less than a 6 month supply, and thought by many to be a sign of a 'normal' real estate market.

The percentage of homes disclosed as a Foreclosure, Bank owned or REO property was 20.0%, or 160 homes. Note: This particular figure is likely under-reported because of agents not wishing to disclose when a home is subject to short sale approval, in hopes of improving showing traffic.

The Biggest concern I have with these numbers is the continued pricing pressure. Even while inventory drops, so do prices, which goes against convention supply and demand.  Combine that with the shadow inventory, or the foreclosures and distressed properties are not yet on the market, and I fear for a depressed summer housing season.  If the shadow inventory gets released by the banks soon, then that means more foreclosure and REO listings, and more  pricing pressure for the Colorado Springs summer housing market. 

Lately I have been hearing some inaccurate statistics being thrown around in regards to short sales.  I've heard that short sales make up 50% of the market in Colorado Springs.  Or I've heard that distressed property sales make up almost half of the market sales in Colorado Springs.  I had a reporter from a local newspaper call me a couple weeks ago and ask me if these numbers were true.  The other day I was in a short sale class and I heard these statistics from a few other agents in the room.  I'm not sure where these numbers came from, but apparently they make for great headlines.  Here are some numbers I know to be accurate, according to the Pikes Peak Association of Realtors in April of 2011 there were 4,582 homes for sale, and there were 748 homes sold.  Of those 748 sold homes 177 of them were 'distressed'.  That means they were either short sales or Bank Owned homes, you may also hear them called REOs (Real Estate Owned).  177 distressed properties out of 748 sold is 23.66% That is certainly not 50%, not even close to half.   April 2011 was fairly typical in that regard.  Over the last 12 months the PPMLS reported data shoes distressed properties sales make up about  18% to  25% of the total sales.   So why don't the headlines read 'Short Sales and Bank Owned Properties make up 1/4 of the market!'  Well, I can only guess it is because as agents we are not required to disclose if a property is a short sale or bank owned property, and people have magically decided that half of us don't disclose the very important facts.  However, most of us do disclose that, certainly more than half of us do.  Distressed properties have a very different sales process than fair market sales and most responsible Realtors will disclose up front if a property is distressed.  So, distressed properties make up somewhere between 1/4 to 1/2 of the total sales marker, much closer to 1/4 I believe.

April home sales in Colorado Springs were down 5.6% from April of 2010. Prices were down slightly, with the average down 2.1% at  $215,4626, and the median (1/2 above, 1/2 below) down 1.4% at $184,900.  The number of Homes for sale dropped 11% to 4,582 homes.  Reduced inventory is a sign of a recovering market, but is a mixed indicator since sales were also down.  Distressed properties accounted for 23.66% of all sales in April.  Distressed properties are still putting pricing pressure on the market, when almost 1 in every 4 homes sold is distressed that really drags down average sales price, here is a list of my Foreclosure Best Buys

One of the Great things about living in Colorado Springs is the mountains.  This year for the second time you can ride your bike up one of the most famous mountain there is.  The 2nd annual assault on the peak will be allowing bikers to stamp out a cadence up Pikes Peak on August 28. See www.ridepikespeak.com for more information.  If you are a cigar lover and a biker like I am, then you will be conflicted as that is the same day as the 2nd annual rocky mountain cigar festival in boulder. www.rmcigarfest.com Hmm what to do!!! 

Data just released by RealtyTrac  shows foreclosure activity to its lowest level since the first quarter of 2008. During the first three months of this year, the tracking firm says one in every 191 homes in the United States received a foreclosure filing, which is a 17 percent decline from a year ago. experts feel this seemingly good news is tainted by delays in foreclosure processing.  As settlements are just now being made from the Robo signing scandal.  Lenders have been delaying many of the foreclosure proceeding waiting on settlements to be made.  I fear the good numbers really just indicate the huge levels of shadow inventory that looms and will eventually be dumped on the housing market.  I suspect shadow housing inventory will  cause pricing pressure on the Colorado Springs, CO housing market for some time to come.  With settlements between loan servicers and the government finally being made it looks like the big dump of shadow inventory will come just in time to crush the summer market.  Good for buyers this summer.

The International Monetary fund issues its annual report and will release it next week.  They are blaming the origin of the global financial crisis on the U.S. Housing meltdown.  Specifically blaming the Government involvement in the housing market for starting the meltdown.  They blamed incentive like tax breaks and tax deductions for causing a overvaluation of U.S Housing, and consequently the run of foreclosures we see today.   The IMF has specifically suggested the government needs to make reforms like more better underwriting standards.  I am starting to worry about all the talk of making underwriting standards harder and the proposed required 20% down payments on governments loans.  Once again we seem to be overreacting and doing it too late.  The current market has very few buyers, underwriting standards are already much stricter.  Many buyers are out of the market now because they can't get a loan.  I do agree with one of the IMF suggestions 'more careful calibration of government participation.'  Hopefully reduced participation if you ask me.  It's time for the private sector to decide what people deserve loans.  Once the proposed government loan requirements goes into effect, those loan will be less attractive and the private sector will need to step up and provide loan products.  If the government caused the housing meltdown I suggest the private sector will take up the recovery.

I saw a interesting statistic yesterday that the foreclosure 'backlog' is 30 times the monthly foreclosure rate. This 'shadow inventory' needs to be absorbed before the housing market can really start to improve in Colorado Springs CO.

Today a company called Corelogic, which does housing inventory analysis, said the current shadow inventory will take 9 months to be absorbed. That would be if there were no more foreclosures in new months, which is unlikely. According to CoreLogic there are 2 million negative equity loans in the Unites States that are more than 50% under water.

Most of these loans will either need to be modified and huge write downs will be taken by lenders or they will end up as distressed properties. That is unless the market makes a rapid and drastic recovery, don't hold your breath... Most people will not hang on to assets that have depreciated to the point they owe twice as much on it as it is worth. Case and point the popular website youwalkaway.com that helps people get out of their under water home though strategic default.

At some point those 2 million homes will be in the shadow inventory and have an effect on the housing market. This is a problem that is not going away and will drag down the housing market even as other economic developments bolster the housing market

This problem is becoming so big for the major loan servicers that they are trying to think creatively about moving some of this inventory. Even the possibility of starting a branch of their business that rents out homes instead of selling them. Given today's tighter lending standards this option might make sense. Less and less people are able to qualify for mortgages so more and more people need to rent.

This puts large loan servicers in an interesting position of owning a lot of homes they had no intention of owning and having to deny the very people who could buy those homes loans because of tight lending standards.

Large loan servicers do not want to be large property management companies. Rents are less liquid, banks need to sale homes to get money to give more loans. Especially now that the government is requiring them to have more cash in reserves. Renting homes would tie up a lot of their money.

At what point is the price of homes too low for these banks to continue to sale the homes and take the loss? Rentals rates are holding firm, simple supply and demand. I do know here is Colorado Springs, CO right now it is easier to rent a home than it is to sale a home. We have a large Military population and many of them rent homes. Something has to be done the increase the absorption rate of distressed properties, Could people be renting homes from Chase, Bank of America or Wells Fargo in the future...maybe.

For the week of March 21- 27th for RE/MAX Properties in Colorado Springs we had 902 properties that we are marketing for sale and we had 848 showings.  We had 2 showing for homes over $1 million and 884 showing for homes under $500,000.

The Case-Shiller index reported this morning another drop in home prices.  I believe that is 6 months in a row.  The index is down 3.1% since January. Inventory remains high and distressed properties and Bank owned properties are still a large part of the Real Estate market here in Colorado Springs.  So if you are thinking about buying a home you want to wait as prices continue to fall...Right.?  Just remember you won't know when the bottom of the marker was until it is in the past.  Nobody can time the bottom of the market.  The time to buy is now.  Interest rates in Colorado Springs are low, inventory is high and prices are great. 

The Department of Veterans affairs' has many foreclosed properties that they must sale in the Colorado Springs, CO and Peyton CO area. I have marketed and sold many of their properties. One tool they use to help move these properties into the hands of new homeowners and investors is a special financing program called Vendee Financing. Because of the unique position of the Department of Veterans Affairs' as both the lender and the home owner they can offer some advantageous terms to prospective homeowners. You do not have to be a Veteran to purchase a VA foreclosure using the Vendee program.

Owner occupied borrows do not have to put any money down and investors only have to put 5% down. They offer a 15 and a 30 year fixed rate mortgage. The current interest rate is 4.5% (as of 3/17/2011) The seller may contribute up to 3% of the sales price to help pay for closing costs and pre-paids.

There is no appraisal required. This is especially helpful with a lot of VA foreclosures I've seen in the Colorado Springs area that would not pass a typical VA appraisal due to poor condition. This program allows new homeowners to get some sweat equity and still use a zero down loan.

Typical VA loans require a home to be in move is ready condition. Vendee homes are often 'a little rough' and priced accordingly so it is a good opportunity to get the home at a bargain and fix it up a little. For investors this program can be wonderful, 5% down investors loans are rare, plus you can use the anticipated rent of the property to help qualify for the loan. There is no limit to how many investment properties you can buy using this program as long as you still qualify.

In a lending world where money is hard to find this is a great program for investors in the Colorado Springs area where we have a lot of VA foreclosures for sale. Colorado Springs is a military town and many of the home purchased here are done so with VA loans, when those loans go bad we end up with a lot of VA Foreclosures.

Recently there have been some changes to the Vendee program that I wanted to share. The new terms are only 3% seller concessions, it was 6%. The loan origination fee is 2.25%, that is the same, unless you has a VA disability in which case the funding fee can be reduced or eliminated. The funding fee must now be paid by the borrower and cannot be paid with seller concessions or rolled into the loan.

 This is a big change, before a good buyer's agent could use this program and show borrowers how a non-veteran can get into a home with no money out of pocket. Now the borrowers will have to bring at least the funding fee to closing. If you have questions or would like to see a list of Vendee homes in the Colorado Springs area please contact me.

As I go through my day as a Realtor here is Colorado Springs CO, people often ask me: "How's business?" Then they ask me "How's the Market?" I think the second question is the one they really want to know the answer to. The best way I can describe the Real Estate Market here is Colorado Springs CO is 'opportunistic' . This is a great market to take advantage of an opportunity. An opportunity to MOVE UP! Often news is good for one person and bad for another. What we hear about in the local Colorado Springs news media is how bad the real estate market is, it's bad for the folks who are under water on their mortgage or losing their homes.

The news is bad for the people in the new construction industry that US housing starts fell 22.5% in February to near record lows. The news is bad for young home buyers with less than perfect credit as lending standards tighten. yes, it is bad for those folks.

So who is it good for? It's good for people who can now move up. The move up buyer will need to sale their existing home and can move into their new dream home. I know your thinking how is it good news that the home you are going to sale is now worth much less than it was a few years ago.

Look at the big picture, if your home in Colorado Springs was worth $400,000 a few years ago and fell to $340,000 now (15%) and your destination home was $600,000 and is now $480,000(20%) at the peak of the market you would have paid $200,000 more for that home. Now you just pay $140,000 more. This is an typical example here in Colorado Springs as we have seen the higher priced homes lose more value than the lower priced homes. Don't focus on how much you are going to lose when you sale, but what a steal you are going to get when you buy. It's an opportunity to get into that dream house.

This could be the best opportunity to move up that you will have. Consider interest rates are historically low, and inventory in Colorado Springs is historically high. In Colorado Springs and the Pikes Peak region we have a 468 day supply of homes priced between $500,000 and $750,000 and a 853 day supply of homes between $750,000 - $1,000,000. If you are lucky enough to be looking for a home over $1,000,000 we have a 1129 day supply of inventory for you to look at! I just a saw a new listing in the Broadmoor that was a $1,000,000 + bank owned home.

There are great homes to look at, you can do so at a relaxed pace with little worry of getting in a bidding war with other offers. New home builders can build you your dream home quicker than ever and at rock bottom prices. Many new home builders will take a contingency offer and start work on your new home while your old home is listed for sale. Most importantly, the sooner you move into your dream home the sooner you can enjoy your dream home. If you want to sell 'at the bottom' I'll be glad to let you know when the bottom is...two months after we've bottomed out. Nobody can predict the bottom until it is in the rear view mirror. I can tell you the opportunity is now! We have a new program at RE/MAX Properties called our Move-Up Program. If you would like to know more please contact me.

Loan servicers are seeing the possible terms of a settlement with the government over the robo-signing investigation. A 27 page document / federal proposal was posted on the American Banker's site . The document is just a proposal and will be negotiated but already I see some glaring problems.

First, lets all agree that vacant distressed properties are a blight on the community in Colorado Springs that they reside in. Second, understand that distressed properties account for about 20% - 30% of the transactions on any given month in El Paso and teller County (the Pikes Peak Region). Short sales and loan modifications can take many months to complete, many take over 7 months, and often the homes are vacant, the owners have moved on, and they have no pride of ownership in the home.

In the federal proposal servicers are not allowed to start foreclosures proceedings while a loan modification is in process. Fine, I have seen first hand here in Colorado Springs, CO where home owners thought they were working on a loan modification and in the meantime their home was foreclosed on. Not only were they shocked and not prepared for a move, but they missed the opportunity to do a short sale because they were focused on a loan modification. The proposal also states that the loan servicer shall be responsible to make sure vacant, REO, and charged off properties do not become blighted.

I can tell you that the most blighted homes I see in Colorado Springs, CO and Peyton, CO are short sales, not REO properties. Banks take steps to do property preservation as soon as they get possession of the home. I am required by my bank clients to make sure the property has utilities on, the property is winterized, there are no safety or health hazards, no debris, and the lawn is cared for. Who is responsible for the home valuation of all the homes that are vacant and abandoned but working on a loan modification or short sale. If banks are not allowed to start foreclosure proceedings the homes will just sit there vacant. If they are trying a short sale there might be a Realtor involved who may try to at least winterize the home. I can't tell you how many homes in Colorado Springs get water damage because the heat is shut off on a home but the water is not. Many short sale clients don't have the money or won't spend the money to keep utilities on or winterize the home. Often they leave debris in the home and don't care for the yard.

If you are working on a loan modification but not living in the home you should be responsible to make sure the home is not a blight. If you are not then the loan servicer should be allowed to start foreclosure proceedings immediately in the interest of preserving the asset and helping the community the home is in.

Why use a 'Buyer's Agent' to help you purchase your next home in the Colorado Springs area?  When my father was selling real estate in Colorado Springs, the idea of buyer's  agency was very different than today.  Certainly when my grandfather was selling real estate in Colorado Springs these ideas were completely different.  You or your parents may have purchased a home this way: Drive around see a house you like and call the number on the yard sign.  Then you  work with the agent that was marketing that home for sale and buy the house.  Think of this - the agent who you worked with was working for the seller, NOT you.  Today the state of Colorado prefers that buyers, especially buyers without a lot of experience buying real estate, use a 'Buyer's Agent' to help them.  The key here is Fiduciary Responsibility.  Here is a paragraph straight out of Colorado's Real Estate forms that defines a Buyer's Agent:

"A buyer s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer."

Think of it like going to court with a lawyer of your own versus using the other party's lawyer to handle everything.  Most of the time you would want your own lawyer.  The best part is that a buyer's agent's fee is most often paid by the seller.  So next time you go to buy a home in Colorado Springs, regardless if it is a short sale, foreclosure, raw land new construction or townhome, use a buyer's agent and get free representation.

As the house of representatives conducted a hearing targeted at ending four government programs that were created to help distressed borrows, the housing market in Colorado Springs, Colorado may be at a tipping point.

Many argue the four government programs : The Home Affordable Modification Program (HAMP), HUD’s Neighborhood Stabilization Program, the Federal Housing Administration (FHA) Refinance Program, and the Emergency Mortgage Relief Fund have done little more than stall the housing recovery. I can say that in Colorado Springs the HAMP program has helped many home borrows avoid foreclose. The anecdotal evidence from my colleges is endless. I can also say that in the hundreds of REO properties I have marketed in Colorado Springs for institutional seller's I have 1 home that the Neighborhood Stabilization Program has even looked at, and they have purchased none.

During the house hearing it was noted that HAMP(Home Affordable Modification Program) has spent $840 million to date and congress has appropriated $7 billion for the Neighborhood Stabilization program. In Colorado Springs it would appear the HAMP program has helped more than other programs. But when Colorado Springs Houses sit vacant for months on end while their outcome is decided in a short sale or situation it has a negative impact on the housing market. The best person to take care of a home is somebody who owns it and lives in it and has pride in it. If the House of Representatives and Congress change their tune on foreclosure mitigation and the banks get their 'robo signing' act together we may see a pick up in the stalled housing recovery in Colorado Springs simply because professional agents will be able to move the homes quicker.

A recent survey by Equi-Trax revealed the majority of short sales take four or more months to complete, according to Realtors who responded to the survey, and many take seven months or more. Moving homes quicker will ease the pricing pressure from distressed properties that we are feeling here in the Colorado Springs area. February 2011 home sales in Colorado Springs were down 21.7% from 2010 but the median sales price was up 4.67%. I offer my interpretation of those numbers. The pricing really wants to stabilize we have been seeing that for a few months now, but transactions are down. Transactions are down because lending has tightened and many of the homes that people want to buy are stalled in short sale negations or sitting in limbo between short sale and foreclosure in a loan modification situation. If we can get these homes sold quicker we may see a real Home Valuation housing recovery.

Eliminating some the foreclosure mitigation programs, or streamlining them to be more efficient might hurt some home buyers but it might help the housing recovery as a whole by getting homes sold quicker, and thus letting the market do what it really wants to do which is stabilize and recover.