CHFA Purchases Over $100 Million in Home Mortgages for Customers Seeking Previously Foreclosed Properties
DENVER, CO – September 4, 2008 – (RealEstateRama) — CHFA announces that it has closed over $100 million in mortgage loans for REO, Real Estate Owned, or previously foreclosed and bank-owned properties. To date, 766, or 35 percent of all CHFA’s home mortgage customers in 2008 have purchased REOs. The average loan amount for the REO properties is $131,345, compared to a $153,289 average loan for CHFA’s non-REO home mortgage customers.
“This is an extremely positive sign for Colorado’s housing market,” said Milroy A. Alexander, CHFA’s CEO and Executive Director. “Foreclosures have been weighing down the market and created a burden on our community. As individuals and families begin to buy these previously abandoned homes, we will see our neighborhoods awaken and become reenergized.”
The top-ten cities where CHFA customers are buying REO properties
| City | # of REO Loans | Total CHFA Loan Amount |
| Aurora | 97 | $12 million |
| Denver | 94 | $11.9 million |
| Colorado Springs | 81 | $11.2 million |
| Thornton | 57 | $7.4 million |
| Pueblo | 48 | $4.3 million |
| Westminster | 28 | $3.9 million |
| Brighton | 24 | $3.5 million |
| Greeley | 25 | $2.9 million |
| Longmont | 20 | $2.8 million |
| Commerce City | 18 | $2.6 million |
All of the loan purchases by CHFA reflect owner-occupied households. Regulations governing CHFA do not allow CHFA to finance investor-owned properties. Ninety- three percent of the purchasers are first-time homebuyers, 42 percent were one or two-parent households with children. The annual median income of CHFA’s customers purchasing the REO properties was $47,262.
“Perhaps we are beginning to see a silver-lining in the housing crisis. First-time homebuyers who were struggling to find affordable housing in Colorado’s booming market, now have new options in the foreclosed housing stock,” said Alexander. “CHFA stands ready to assist these buyers in not only achieving, but sustaining homeownership through our fixed-rate mortgage products, down payment, and closing cost assistance. The financial resources made available to Colorado under the recently signed Housing and Economic Recovery Act of 2008 will help us continue this important work.”
CHFA encourages all of its customers, particularly those purchasing REOs, to secure a home inspection prior to closing. Home inspections help buyers be aware of, and financially prepared for any short- or long-term maintenance needs.
By Jerilynn Martinez
About the Colorado Housing and Finance Authority
