Instant equity and cheap prices drive demand for federal owned properties.
As Colorado reaches all-time highs in state foreclosures and loan defaults, many independent and corporate investors are at bidding wars for properties well under their appraised values.
Due to the recent changes in the market in the 10-year Treasury bond and other changes in yield spread throughout the market that have lifted interest rates as of late, many potential home buyers have backed off from wanting to buy, paving the way for investors looking to profit from undervalued homes.

Anyone can bid on HUD?s (United States Department of Housing and Urban Development) list of foreclosed properties, and a bid can be placed for at least 10% less of the total asking price from HUD.

Private investor Paul Aragon, from The Aragon Group L.L.C. says, ?There are plenty of properties to choose from on a weekly basis, so picking and choosing the right property is a little easier since rates have gone up as of late and the pool for home occupied home buyers has depleted.?
Most importantly, Colorado has yet to hit rock bottom from the foreclosure market.
Denver metro area cities such as Thornton, Commerce City, Brighton, and Aurora continue to post increases of foreclosure, and as a result home values in these areas have decreased dramatically due in part to the amount of foreclosures.

Altogether, the Denver-Boulder-Greeley demographic ranks fifth in the country for foreclosures with 1 out of every 105 homes in foreclosure. Colorado Springs which is 65 miles South of Denver ranks thirteenth with 1 out of 155 homes in foreclosure (RealtyTrac.com).
Not all foreclosures are HUD properties; these properties fall back onto HUD when the loans in which these properties were funded have gone into default, but only for loan programs which were funded by the Federal Government such as FHA or VA loans.

?Because these loans have gone in default doesn't mean that they are bad loan programs, actually they are very good programs. Many of the foreclosures are due in part to the time in which home buyers were buying homes. Three or four years ago the housing market was booming and interest rates were excellent. The sub-prime market allowed many to qualify for homes, the same cannot be said today,? says Senior Loan Officer Ryan Russo of Colorado Mortgage Helper.
Russo adds, ?Today many lenders have tightened guidelines making it difficult to qualify for a loan, even for investors.?

Even so, investors see the changing of the times as a time to buy now and sell when the market changes, profiting from others mistakes and fueling the demand for HUD homes.
There will be much to choose from for the time being in Colorado with no signs of slowing down.

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