Lending Standards Blamed For Denver Defaults
Foreclosure filings have exploded in the Denver metro area and county officials are pretty clear as to who is to blame. "'Lenders started giving money to people, and it's gotten out of hand,' said Jeannie Reeser, public trustee of Adams County. 'I am talking to people who have jobs, but their income doesn't come anywhere close to matching their financing.'"
"Soaring foreclosure filings in Arapahoe County for the first three months of this year helped drive metro Denver's foreclosure rate 34 percent higher than the same period of last year and 30 percent higher than the fourth quarter of 2004. The rate represents 1.3 percent of 125,325 single-family, owner-occupied houses in the county."
One mortgage lender says borrowers should be wiser. "Everybody has to have what they want right now, no waiting, no saving up," he said. "Credit is so loose today that I can buy the groceries I need on a credit card, eat the food tonight, discard the food by tomorrow at noon and finance my debt on a 30-year, amortized loan. How stupid is that? But people do it all the time - and then they wonder why they're in foreclosure." Thanks to the reader who posted the link!