Arizona State University reports the February sales numbers. "For February, 4,280 homes were recorded sold, in contrast to 4,520 for January, 5,460 for a year ago and 7,935 transactions in 2005. This was the lowest February since 4,090 homes were recorded sold in 2003, which was the lowest month for 2003. So far in 2007 a total of 8,800 homes have been recorded sold in contrast to 10,715 in 2006 and 17,290 in 2005 for the same time period."

"'The activity levels should be well below those of the last few years, because the current market lacks the market frenzy to own and/or invest at almost any price and reasoning,' said Jay Butler, director of Realty Studies at Arizona State University."

"Since home prices have declined slightly from a year ago, the monthly payment of $1,300 is down from last year's $1,320. Limited home appreciation and household income continues to raise concern about the ability of some homeowners to maintain their homes."

The East Valley Tribune. "Some people are asking, 'When will the market recover?' and are expecting prices to soar again like during the housing boom, Butler said. But the market has recovered, he said. It won’t keep rising at the same frenzied pace, he said."

The Arizona Republic. "A group of former housing counselors, loan officers and an escrow agent has been indicted on fraud and conspiracy charges in one of the biggest real estate fraud cases in Arizona since the housing crash of the late 1980s."

"The group is accused of defrauding the Department of Housing and Urban Development of $1.9 million through a pre-foreclosure scam that targeted dozens of first-time homeowners across the Valley from 2001 to 2003, according to a grand-jury indictment."

"The investigation into the pre-foreclosure scam began before a recent wave of mortgage and real estate fraud in metropolitan Phoenix. Several other fraud investigations are under way."

The Rocky Mountain News from Colorado. "An analysis of foreclosures in 2006 for the Colorado Bankers Association released Wednesday found that, on average, homes that went into foreclosure had the loans in place for only 987 days, slightly less than three years."

"Nonbank loans, which accounted for 77.5 percent of the loans in foreclosure, had an average price of $201,536 and a median price of $161,354."

"Chris Holbert, president of the Colorado Mortgage Lenders Association, said it is not a surprise that most of the loans in foreclosure were made by nonbanks because about 70 percent of mortgage loans nationwide are made by mortgage brokers."

"But, he said, 'I would not take from this study that you are at a three times greater risk of foreclosures or default if you get a loan from a nonbank.'"

"Colorado's status as a mortgage fraud 'hot spot' isn't cooling. The FBI, which named Colorado as one of 10 states with the most mortgage fraud cases in 2004, this week listed the state among seven with the most mortgage fraud cases in its 2006 Financial Crimes Report."

"The FBI report said research indicates that 80 percent of mortgage fraud nationwide 'involves collaboration or collusion by industry insiders.'"

"Carolyn Sandberg, a broker with Home Real Estate in Westminster, said she ran into a case of what she considers mortgage fraud when an elderly couple she was representing were buying a house. Their loan was going to rise almost immediately from slightly more than 6 percent to more than 9 percent."

"'I stopped the deal three days before the closing' and put them in touch with a reputable mortgage lender, she said. 'The (original) lender went nuts,' she said. 'He was probably calling me 10 to 14 times a day.'"

The Denver Post. "A survey of 374 randomly chosen foreclosure filings released by the Colorado Banker's Association found that the average age of a loan going into foreclosure was only 2.8 years, and that borrowers had paid down 3 percent of the mortgage amount. Nearly 8 out of 10 of the foreclosures involved adjustable-rate mortgages."

"Many ARM loans adjust to current interest rates three or five years after the original loan. But some are going bad well before that. 'You may be looking at people who couldn't handle the original payment,' said Don Childears, president of the Colorado Bankers Association."

The Gazette. "The Colorado Springs economy slowed dramatically during the second half of last year, a malaise that has continued into early 2007, according to revised state job-growth data released Thursday. In January, local job growth slowed to the lowest level in nearly three years."

"The number of firsttime claims for unemployment benefits surged 74 percent in January from a year earlier, to 451, the most since March 2005. 'You obviously have a slowdown, but I am not convinced the Springs economy is headed into a recession,' said Joseph Winter, an economist for the Colorado Labor and Employment Department."

"From job growth to home sales, economic indicators point to a sluggish economy in the Pikes Peak region: Home sales fell 11 percent in February compared with the same period a year ago."

"The pace of new-home construction in 2007 is off to its poorest start in years — single-family home-building permits fell by 50 percent in February compared with the same month in 2006."

"If you could spend a few hours with me driving around the Denver area, you would be amazed. Many neighborhoods have a dozen foreclosed properties, and there are more waiting in the wings. I spent five days showing the nicest young couple around, and we looked at vacant foreclosure after vacant foreclosure."

"If these foreclosed properties keep coming on the market, as all indications seem to show, we will have way too many foreclosed homes. It will overwhelm this market and have unavoidable long term effects. Prices will have to come down."

"It is a very serious situation: We are going to see second mortgages on zero down purchases be eliminated. They are simply too risky."

"When buyers buy, they need to be aggressive and patient and wait for that great deal. It is their only protection against this coming real estate market. I look forward to the day when I can see a turnaround and a positive growing market. As it stands now, when you buy here you had better be getting a great deal."