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  Home Page » News » Another Possible Sign Of Trouble

Another possible sign of trouble

Foreclosures filed in La Plata County highest since 1989

by Chuck Slothower
Herald Staff Writer Key indicators of the local housing market show foreclosures in La Plata County have reached an 18-year high while residential building permits in Durango are down 73 percent compared to a year ago.

La Plata County reported 97 foreclosure filings through September, and 99 through Friday. Foreclosures appear all but certain to pass into triple digits for the first time since 1989, when 112 creditors filed for foreclosure.

Filings have occurred this year at a clip far outpacing 2007, when only 60 foreclosures were filed through September. Foreclosures are now 62 percent ahead of the same point last year, according to data from county Treasurer Ed Murray.

The data represents foreclosure filings, not sales conducted at auction. Each year, many foreclosures are withdrawn before sale because debtors come to terms with their creditors. So far this year, 25 foreclosure filings have been withdrawn.

"We're seeing more withdrawn," Murray said. "We don't know why."

A law took effect Jan. 1 that lengthened the timeline on which foreclosures progress, giving homeowners longer to extricate themselves, Murray said.

While La Plata County's jump in foreclosures was particularly pronounced, throughout the state foreclosures increased 16 percent during the first half of 2008 from the same period last year.

The foreclosure data comes on top of mounting bad news for the economy.

Residential building in Durango has slowed considerably. Through September, the city of Durango issued permits for 66 units, down from 247 units at the same point in 2007. The data include single-family, multi-family and duplex units.

"This is the same all over the state," said Emil Wanatka, president of Timberline Builders in Durango and treasurer of the Colorado Association of Home Builders. "It is a very challenging time for the industry."

In addition to tightened lending that makes it difficult for homebuyers to obtain a mortgage, builders are also facing higher regulatory costs, Wanatka said.

"We are seeing increased regulations across the state and increased fees on building that could potentially make this recovery much longer," he said.

The construction industry shed 6,100 jobs in Colorado during the 12 months ending in August, according to the state Department of Labor and Employment.

Colorado's unemployment rate was 5.4 percent in August, below the 6.1 percent national average. The national rate was the highest in five years.

The U.S. Labor Department announced Friday that employers slashed 159,000 jobs in September, the largest cut since 2003.

chuck@durangoherald.com.

The Associated Press contributed to this report.