Foreclosure filings up in Puget Sound area; rate still low compared to nation's

With local foreclosure filings up and one in every 517 Seattle-area homeowners now in danger of losing their home, there's no doubt the housing malaise affecting much of the country has hit here.

But compared with the nation, and particularly hard-hit California, the Greater Seattle area has only the sniffles, not the full-bore flu, a quarterly foreclosure report being released today by RealtyTrac shows.

Homeowners in the Seattle-Everett-Bellevue area combined saw foreclosure filings increase 41 percent in the first quarter of this year compared with the first quarter of 2007, the California-based foreclosure-information provider reported.

Filings were up 7.8 percent compared with the fourth quarter of last year.

But nationwide, filings increased 112 percent, putting one in every 194 homeowners in danger. Worst hit was Stockton, Calif., where one in every 30 owners faced losing their home.

The Greater Seattle area, by contrast, was 81st out of 100 metro areas for foreclosure action. Tacoma ranked 48th, with one in every 204 owners in some stage of foreclosure during the first quarter. Portland-Beaverton, Ore./Vancouver, Wash., ranked 69th.

California has been particularly hard hit by the fallout from the subprime-mortgage mess, which has fueled foreclosure filings. Debt-strapped owners have been unable to absorb the higher mortgage payments commonly built into subprime loans.

Nine of the top 20 cities reporting the most foreclosures are in California. Other Sun Belt cities and Rust Belt cities like Detroit were included.

"Foreclosure activity in the first quarter increased in 90 of the nation's 100 largest metro areas, demonstrating that most regions of the country are seeing more foreclosures," James Saccacio, RealtyTrac's CEO, said in a statement.

While the Seattle area was in the bottom fifth for first-quarter foreclosures, the entire state was solidly in the middle.

Ranked 26th, Washington saw foreclosures climb 62 percent last quarter compared with the same period last year; 14 percent compared with the fourth quarter. One in every 407 homeowners in the state was in danger of losing a home.

No detail was available to explain why the Seattle area is faring better than the rest of the state. Seattle's economy is stronger than the national average, providing the possibility most local owners have the income to keep their homes.

Elizabeth Rhodes: erhodes@seattletimes.com

More vacant homes for sale

The percentage of vacant homes for sale in the U.S. set a record in the first quarter, the government said Monday.

The Census Bureau report shows 2.9 percent of U.S. homes — excluding rental properties — were vacant and up for sale, compared with 2.8 percent in the fourth quarter of 2007. It was the highest quarterly number in records going back to 1956.

The West showed the biggest increase, rising to 3.2 percent from 2.6 percent in the first quarter of 2007.

Global Insight economist Patrick Newport called the report worrisome.

"The inventory problem has not gotten any better," Newport said. Although homebuilders have reined in construction, he said, "they still will have to cut back more."

— The Associated Press