Colorado’s foreclosure crisis has hit bottom, and most states are in worse shape than in Colorado as far as homeowners losing their homes. That's the news reported by John Rebchook from InsideRealEstateNews.com from an interview with Ryan McMaken of the Colorado Division of Housing based on the analysis of the latest Mortgage Bankers Association data.

McMaken’s analysis of the data shows that Colorado with the 14th lowest foreclosure inventory in the nation. The MBA tracks loans that are 30, 60 and 90-days delinquent. After a homeowner hasn’t made a payment in 90 days, banks can begin the foreclosure process.

The percentage of Colorado mortgage loans in foreclosure fell to 2.53 percent in the fourth quarter, compared to the national average of 3.63 percent. Even on a national basis, the foreclosure rate is down from its all-time high of 5.02 percent in the first quarter of 2010.

“Clearly, we have hit bottom,” McMaken said on Friday. “But the number of filings are still going up and there is still so much fragility in the market that we don’t want to be over-confident. Anything can happen. But the trends we are seeing so far have been good.”

And Colorado “continues to improve faster than the nation with its delinquency rate,” said McMaken. He also analyzed third-quarter delinquent mortgage data from the MBA and “the same trend held up . Colorado held up better than the nation.”

However, the total inventory of foreclosure homes in Colorado is rising, which McMaken attributes to the delayed foreclosure process during the “robo-signings” of big banks. Still, the total inventory of foreclosed homes is down almost 10 percent from its peak reached at the end of 2009.

Yet, it is clear the the number of new distressed loans in Colorado “are accelerating downward faster than across the nation. Nationally, loans that are either in foreclosure or 90 days delinquent are down 11.4 percent from their peak, while in Colorado they are down 15.7 percent from their peak, McMaken’s analysis shows.

What is your opinion about the foreclosure news? Does it reflect your personal experience, or do you feel that we have yet experienced the worst of it? Comment and share your opinions and be sure to read the rest on Inside Real Estate News and about foreclosure updates.