SUMMIT COUNTY — The local property foreclosure rate for 2009 is up about 63 percent from 2008, but it's only a few hundred homes and local Realtors aren't especially concerned.

“They're up very significantly,” said Bernie Zurbriggen, broker and owner of High Country Real Estate. “But we didn't have that many to start with.”

Of Summit County's estimated 26,765 residential properties (with time-shares counting as one property each), about 280 entered the foreclosure process last year. That's about 1.04 percent of residences.

Colorado overall had a 2.37 percent (50,514 homes) foreclosure rate in 2009, the 10th highest in the country, according to an article in the Denver Business Journal.

While the statewide number dropped from 2.41 percent the previous year, the number in Summit County increased from 0.70 percent in 2008.

“Our market lags in terms of turning around,” said Daniel Johnson, broker with Resort Brokers Real Estate. “When the rest of the country starts climbing, we're going to see a delay before that happens here.”

Johnson said Summit County's residential foreclosure rate — which was at 170 by October 2009 — is “almost insignificant unless that house is next door to your home.”

Homes that enter the foreclosure process often end up getting sold for much less than they're worth.

“It makes the neighborhood look terrible, because if the guy next door sold for a lower amount of money, it sets the market,” Johnson said.

Summit County Public Trustee Bill Wallace said 300 properties entering foreclosure in 2009 broke down to roughly: 139 single-family residences, 63 time-shares, 78 condominiums, 14 vacant lots and three commercial properties.

“We had very few actually go to sale; most of them got cured. The owners worked something out with their mortgage company,” Wallace said.

Maggie Dew with Stewart Title of Colorado's Summit County Division said that in 2009, 56 residential properties were foreclosed relative to 23 in 2008.

The foreclosure process generally starts when a borrower is more than 90 days late on a mortgage payment. A notice of election and demand is filed, the borrower has up to several months to work with the lender — depending on the situation — and if all else fails, the Summit County Sheriff's Office is sent out to evict the residents.

Juggling foreclosures, learning the system

A local resident living in a home worth more than $1.2 million ran into hard times after some high-end East Coast homes in which he'd invested were struck by successive hurricanes earlier in the decade.

“I started to see the writing on the wall,” said the resident, who shared his story under the condition of anonymity.

The man had purchased the three homes at $1.1 million, $2.3 million and $2.5 million. He repaired all three of them after two hurricanes in 2004, and they got hit again in 2005.

“I had lived there 15 years and never got hit by one,” he said, adding that hurricane insurance for each home increased from $3,500 per year to $60,000 per year.

In 2007, the man was able to sell the $1.1 million home, but the $2.3 million home was later foreclosed upon and the third remains in litigation.

As the housing market started to crumble, he tried to keep afloat by taking out a mortgage against the Summit County home for its full value (he'd first paid for it in cash), realized he needed more money and took out a second position for $500,000.

He said before the foreclosures, his credit score had been excellent.

“Since the damage was done when I stopped doing business on the East Coast properties, I had to decide what I could and couldn't afford in life,” he said. “I stopped making payments on this house as well.”

Before the foreclosure on the local home, which remains on the foreclosure list, he said his lender wasn't especially open to negotiations. But in recent months, the talks have improved. He's not worried about getting kicked out of the house.

“I know exactly where I sit in regard to where the laws are,” he said. “Everything down to the specific day can be remedied.”

Robert Allen can be contacted at (970) 668-4628 or rallen@summitdaily.com.