The foreclosure rate for Larimer County looks dismal as foreclosure filings are on track to increase 10 percent by year's end, according to new statistics from the Colorado Division of Housing.

Larimer County reported the ninth highest foreclosure rate along the Front Range with one foreclosure filing per 143 households.

But the statewide forecast looks even worse. Foreclosure filings increased 6 percent from the first to second quarters, setting the pace for the state to see a 25 percent increase in filings by the end of the year, topping 36,000.

Sara Allen, executive director of the Consumer Credit Counseling Service of Northern Colorado and Southeast Wyoming, doesn't expect a turnaround anytime soon.

For a nine-month period from Oct. 1, 2006, to June 30, 2007, the credit counseling service saw a 59 percent increase in foreclosure avoidance calls, compared to the same period last year.

Allen said people in Colorado took advantage of adjustable rate mortgages to either buy more house than they could afford or refinanced with adjustable rate mortgages so they could pay off other debts.

And as more of those rates are set to change, Allen expects the problem to continue as people can't afford the increased mortgage payments and can't sell their house because of a sagging real estate market.

But some changes to foreclosure procedures that take effect Jan. 1 are aimed at benefiting the homeowner.

The biggest change, and the one that impacts homeowners the most, gives homeowners more time to "cure" their mortgage - between 110 and 125 days - but takes away their redemption right after the sale.

Curing the loan means it's brought current, including back payments, attorneys' fees and other costs incurred.

Under current regulations, homes go to foreclosure sale more quickly, but homeowners have the right to redeem their homes within 75 days after sale.

Sagel said that change came after some "questionable practices" of investors or other interested parties offering homeowners less than what they should be offered.

"It's not necessarily illegal but it's a little unethical," he said. "(Benefiting the homeowner) was our focus. We're trying to help the homeowner."

Allen reminds homeowners to take advantage of the Colorado Foreclosure Hotline and consumer credit counseling services before it's too late. There are options when facing a foreclosure, such as working with lenders to possibly modify the mortgage and hold off on adjustments or helping a homeowner find extra money "just to be able to hold on."

"It's painful to be in a place where you can't afford your house payment," she said. "Once payments fall behind, it's harder to negotiate with lenders."