SEATTLE AVENUE

The Association of Community Organizations for Reform Now (ACORN) reports that Washington state has the 18th highest foreclosure rate in the country.

Foreclosures on subprime mortgages are at an all-time high. A situation fueled by adjustable rate mortgages sold in recent years. Rates are now adjusting, or recasting, and loan payments are increasing 10% to 50% in some instances. People can’t keep up and loans are being defaulted.

In King County, the two neighborhoods with the largest number of people losing their homes (in April 2007) were Rainier Valley and Kent — both areas with high concentrations of minority, foreign born, and single homeowners. Predatory lenders troll neighborhoods like these.

In Washington in 2006, there were 18527 foreclosure filings. This was an increase of 25% from the number of foreclosures filed in 2005. The 18527 foreclosure filings represents one foreclosure filing for every 129 households in the state.

Last year there were 1.2 million foreclosures filed nationwide (over 2 foreclosures a minute.) In 2005 there were about 900,000 foreclosures filed.

The foreclosure problem is expected to get worse this year with about 1.5 million foreclosure filings nationwide. 1 in 5 subprime loans could end in default.

Foreclosure rates for cities across the nation can be seen here. Scroll down to ACORN releases study on foreclosure epidemic.

Visit ACORN here to learn:

• What should people do if they face foreclosure?
• Why are there so many home foreclosures?
• How do people get stuck with bad loans?
• How did subprime lending expand so rapidly?
• Why is the crisis coming to a head now?

Call 1-866-67-ACORN if you know someone who is in danger of losing their home.