Foreclosures up sharply in state, Seattle area

Following a national trend, Washington state's mortgage foreclosures increased significantly last year, claiming 18,527 homes.

In the Seattle/Bellevue/Everett area, one in every 136 homeowners was displaced by foreclosure, as was one in every 75 Tacoma owners.

Still, the state and the Seattle area faired better than the nation as a whole, according to RealtyTrac, a California-based foreclosure-information provider. It released its 2006 annual report late last week.

Washington state foreclosures grew 25 percent last year compared with a year earlier -- far below the national increase of 42 percent.

James Saccacio, RealtyTrac's chief executive, cited the slowing housing market and the effect of subprime and adjustable-rate mortgages for the increase.

"As more and more of these loans reset, we saw a surge to finish the year, with the fourth quarter producing more foreclosure filings than any of the previous three quarters," Saccacio said in a statement.

When loans reset, it means higher monthly payments, which can lead to foreclosure for those homeowners who can't afford them, can't refinance and can't sell their home.

That scenario was most prevalent last year in Colorado, where one in every 33 households experienced foreclosure.

In the Denver area specifically, it was one home in every 24.

In Washington, it was one in every 129, with the number of filings declining in the second half of last year.

RealtyTrac had no data explaining why Tacoma reports more foreclosures than the state average.

Currently 1,700 King County homes are in the process of foreclosure, according to RealtyTrac's Web site. Owners of some of those will find the money or sell the homes before foreclosure is completed.

Elizabeth Rhodes: erhodes@seattletimes.com