Colorado may be the first state of many to experience a high rate of foreclosures.  19,000 plus foreclosures in Colorado in 2006 have led to a drop in the rate of appreciation which could lead to a drop in values throughout the Denver metro real estate market. 

Yesterday a woman called wanting to know how much values have dropped over the last year.  She was in a very precarious situation with her mortgage, and had only 30 days to figure out how to keep her house.  She was hoping to solicit a relative's help in refinancing her current loan, and needed to know where an appraisal would value her house for refinancing purposes.

I offered to provide her with a market analysis of her home, but she already had one from another REALTOR(R).  I wished her well, knowing that she probably wouldn't be able to save her home because of the kind of upside-down mortgage she had.

Colorado is one of two states who don't regulate mortgage brokers.  Registering with the state and background checks were required last year for the first time, but that only weeds out the lawbreakers.  It doesn't require a minimum of training, continuing education, adherence to a Code of Ethics or any of the other strictures placed on real estate sales people or brokers.  Anybody can go into business as a mortgage broker without knowing anything about what they're doing, or with an intent to make as much money as possible by passing along home loans to unwary and naive home buyers with the highest rate of return for the mortgage broker.

A new bill making its way through the Colorado legislature would require mortgage brokers to be licensed and not just registered.

Rocky Mountain News real estate reporter, John Rebchook, contributes a stellar article on The Ins and Outs of Home Loans that should be required reading for all consumers in the market for a home loan.

When home buyers come to me for a referral to a lender, I point them to a direct lender in Memphis who treats my clients with respect, doesn't try to talk them into inappropriate loans, charges no "junk" fees, and provides great customer service.  Some folks think that's "steering," but as an attorney friend of mine (also an Exclusive Buyer's Agent) says, "You wouldn't want me to represent you as an attorney, and if we needed an expert witness, submit three names to you for you to choose.  You'd leave it up to me to choose the best expert witness who in my judgment will provide you with the best expert testimony"  He thinks that it's our obligation as fiduciaries representing clients to provide them with the very best mortgage professional we know of.  I'm with him on this issue.  I've dealt with my Memphis lender in representing my clients over a long period of time, and I have the judgment required to decide whether a lender can be trusted to look out for my clients' best interests.

If you're thinking about buying a home in Denver and need an Exclusive Buyer's Agent (who never represents sellers, and therefore doesn't have a conflict of interest, and is an expert on buying residential homes) and a mortgage referral, give me a call at 303-587-3509.  You don't want to take chances on what may be the biggest purchase you'll ever make.