So far this year, Colorado foreclosure sales have decreased across the state by almost 21 percent. Moreover, foreclosure filings have dropped by 29 percent. However, if you look at November 2011 only, the figures are not as good. As compared to November 2011, foreclosure sales have increased by 7.9 percent, whereas foreclosure filings are down by only 22 percent.

On the other hand, Larimer County in particular is underperforming Colorado state averages. The Colorado Division of Housing reports that 733 Larimer County residences have been sold through foreclosure this year; 833 had been sold by the same time last year. In other words, foreclosure sales have only declined by 12 percent in Larimer County. When comparing November 2011 to November 2010, Larimer County foreclosure sales have skyrocketed by 47 percent, even though filings have declined by 37 percent.

One regional economist cited long-term unemployment and current unemployment statistics as the reasons for Larimer County's foreclosure difficulties. He said the dilapidated state of the job market will prevent unemployment from improving. These factors, combined with the fact that many county homeowners are fraught with negative equity means many families will remain in danger of facing foreclosure, the economist said.

When homeowners have negative equity, it means they are underwater on their loans--in other words, they owe the bank more money than the actual value of their home. If for some reason a family is suddenly unable to afford their mortgage and they are underwater on the loan, it means that even if they could sell their house, they wouldn't receive enough money to pay off their debt. In some cases, the family would best be served by filing bankruptcy; however, in other cases the family may have options to re-finance their loan and/or negotiate with their lender to reduce their monthly payment obligations.

Colorado residents facing the threat of foreclosure have many different alternatives available for solving the financial quandary of not being able to afford their mortgage payments. Indeed, preventing home foreclosure requires a sound legal strategy. Because foreclosure typically involves unpaid debt that will only get worse with time, it is a problem that rarely just goes away. But preventing home foreclosure is often possible in many cases for those that act to resolve their financial problems through legal means before they spiral out of control.

Source: The Coloradoan, "Larimer County sees fewer foreclosure filings, sales than last year" Pat Ferrier, Dec. 7, 2011