A pair of reports from Colorado. The Rocky Mountain News, "Last month was a pretty typical July for the Denver-area home market, with the record inventory of unsold homes creeping up only slightly. 'It is pretty much the same as it has been,' said (realtor) Jerry McGuire, in Highlands Ranch. 'The inventory went up only 89 properties from June to 31,989, which is a new high but I would say is really pretty stable,' he said."

"The number of homes placed under contract fell from June, but that can be attributed to the seasonal market. The average and median, or middle, prices were down, too, which also is typical for this time of year."

"The ever-increasing number of foreclosed homes on the market 'is driving prices down for the average seller. If you have a fixer-up that needs work, you had better price it at what a foreclosed home is selling for, because John and Jane Doe are out there looking at foreclosures,' (broker) Sunny Banka said."

"Independent broker Gary Bauer said he was surprised that the average price dropped as much as it did in July, because he thought there were enough luxury homes sold last month to drive the average price higher, even though there still is not a lot of across-the-board appreciation. 'While it is still a buyer's market, sellers are out there,' Bauer said."

The Post Independent. "Garfield County, along with Mesa and Eagle counties, has been riding a roller coaster of home loan foreclosures for the past 26 years since the oil shale bust in May 1982."

"'I think we're on our downturn,' said Bob Slade, Garfield County's chief deputy public trustee. Alpine Bank mortgage consultant Mike McAvoy disagrees. 'I think this is going to even climb more in the next three or four years,' he said."

"Slade believes that currently the majority of foreclosures comes from suburban developers who have anticipated a market that simply isn't there. 'This year, it's been the big development areas, the speculation areas,' said Slade. 'I just recently had a $10 million foreclosure on a place called Alkali Creek. Just because they can't sell them,' he said."

"Another big factor in the foreclosure rate, according to McAvoy, has been how the number of 100-percent-interest loans has gone up since the late '90s. 'The number of exotic loans that are out, the 100-percent financing, the interest-only, the option arms and things like that where people just don't understand or aren't explained to what the ramifications are of that,' said McAvoy."

"'These people say, 'Well I'm at 1 percent or 4 percent.' That isn't even covering the interest-only portion. That creates a negative amortization, so that money is being stacked onto your principal balance, so now you owe more than the house is worth. That's where people are getting themselves into trouble,' said McAvoy."