Some housing bubble reports from Colorado. "For the sixth consecutive month, Colorado has the highest foreclosure rate in the country. Colorado Attorney General John Suthers said he thinks the state will be grappling with the foreclosure problem for at least another year or two."

"Suthers said that 'creative financing,' such as interest-only loans and the lack of home appreciation, are bigger culprits in rising foreclosures than fraud. 'But in a market like this, where homes are going up 3 percent or 4 percent, you face losing your home to foreclosure if your mortgage adjusts upwards by hundreds of dollars each month,' Suthers said."

"Denver City Council member Michael Hancock said there are so many vacant homes on some streets, it is 'going to change the shape and profile of some neighborhoods for a very long time. It really is a sad situation.'"

"'I do not think there is a greater issue threatening the economic and social vitality of our communities than the rising foreclosures in our city,' Hancock said. 'I think predatory lending has played a role. However, I think the lack of buyer education has played a greater role in the increasing rates.'"

"Investors, especially those from California, who recently have been accounting for 70 percent of the bidders, are willing to pay record prices for Denver office and retail buildings because they look cheap."

"Asked if investors are concerned that real estate foreclosures in Colorado are leading the nation and heading toward record territory, investment broker Patrick Deveraux said: 'We hear about that some, but not as much as you would think. It may sound crazy, but a lot of investors are dealing with OPM, other people's money.'"

"He said the question he increasingly is getting from 'really smart guys who are investing for their own accounts is, 'Hey, are you buying houses?' It sounds like a good time to buy houses, sit on them for a while, let the job growth kick in, and make some money.'"

From the Brighton Standard Blade in Colorado. "With more houses for sale than buyers, some local homeowners are no longer seeing their largest asset appreciate. Three conditions are driving the problem: more owners filing for foreclosure, higher rates of new home building and rising interest rates."

"Distressed property is not selling at distressed prices. 'We’re seeing banks just sit on repossessed property,' said Adams County Assessor Gil Reyes. 'They’re waiting for full value.'"

"The old adage, a house is only worth what someone will pay for it, has become a rude awakening for many local homeowners. Despite modest gains during the last five years, existing homes are not selling for what homeowners believe they are worth."

"One owner who wished anonymity, said she and her husband want to sell their 35-year-old home in a neighborhood near East Bromley Avenue. The home’s last tax assessment was $210,000. 'Our house is worth $240,000,' she insists."

"Not if a buyer can get a better deal. And that’s the problem."

"Existing owners are competing head-to-head with new builders who offer incomparable loan packages. 'They (builders) will do anything to get someone into their homes,' said Realtor Dee Durland."

"While the county’s next tax assessment will provide a better gauge of values, Reyes predicts more established neighborhoods will see stagnant appreciation. 'Perhaps even declines in more older neighborhoods,' Reyes said."

"In May, the number of new single-family permits increased 38 percent from the same month in 2005. 'Brighton’s problem is the number of new homes being built,' Reyes said, agreeing existing homes are probably not moving very fast. Likewise, many new houses are being bought with unconventional loans, which portend further bad news for foreclosures."

"The largest chunk of adjustable rate mortgages and zero-interest loans in Colorado have yet to explode. Observers like Jeannie Reeser, Adams County public trustee, says she see no end in sight for foreclosures."

"Adams County Treasurer John Lefebvre agrees. 'We hear 2007 will be the year of reckoning in the mortgage industry,' he said."