Foreclosure filings in San Diego County doubled during the first three months of this year over the same period last year and increased sixfold over 2005, according to a survey released Wednesday.

For the month of March, county properties in some stage of foreclosure climbed by 49 percent from February to 2,551, the highest one-month level since the real estate market began to cool in 2005, according to RealtyTrac Inc., an Irvine foreclosure listing service in Irvine. That figure represents one in every 408 households.

During foreclosure, a mortgage holder such as a bank or mortgage lender takes legal steps to seize property from an owner who is in default, or behind in making payments. Of the 2,551 properties in the county, 1,998 were in default, 415 were on notice the property would be sold for repayment and 138 had been foreclosed on or repurchased by the lenders.

While foreclosures nationwide are on the increase after years of a robust housing market, James J. Saccacio, CEO of RealtyTrac, said in a news release that they are not far from historical norms, but cautioned that there could be widespread consequences if foreclosure activity continues to accelerate.

In recent days, federal regulators and consumer advocates have called for lenders to work with homeowners to stave off foreclosure. On Wednesday, major mortgage lender Washington Mutual Inc., which blamed bad loans for a drop in first-quarter profits, said it will spend $2 billion to help to help at-risk borrowers refinance their mortgages.

Experts attribute the rising default and foreclosure rates here and across the nation to two factors: lax lending standards, that allowed borrowers to qualify for homes they could not afford, and a slowing real estate market, which makes it difficult for troubled borrowers to sell and pay off what they owe. Those homeowners most affected took out subprime loans, made to borrowers with poor credit, most of which carry adjustable interest rates that are or will reset to higher rates.

Consumer groups have warned of an impending wave of mortgage resets in the next two years.

David Michael, director of counseling for Money Management International, an accredited credit counseling service with three offices in San Diego County, said that in the first quarter of this year, its Oceanside office counseled five times as many clients with housing problems as it did during the same period last year.

Many clients have mortgages whose rates have adjusted sharply, increasing mortgage payments by as much as $800 per month. "Things just look bleak for them," Michael said.

Michael said that because the monthly payments can ratchet up so quickly, traditional credit counseling - such as having homeowners set up a household budget and cut back on expenses such as drycleaning or dinners out - won't begin to help.

Some clients would like to sell, but can't recover what they owe now that prices have flattened in a slow market. Others are maxed out on their home equity and can't qualify to refinance their mortgages.

In a noteworthy change over previous years, more than half the clients seeking help at the Oceanside office come in while they are still current on their mortgage, because they can see big trouble ahead, according to Michael.

"In a lot of cases there are going to be dramatic increases," he said. "The math just can't add up."

Foreclosure filings in California increased by 36 percent in March over February and tripled from the year before, according to RealtyTrac. California properties accounted for 21 percent of the nation's total filings, with one foreclosure filing for every 389 households, twice the national average.

Gary London, of the London Group Realty Advisers in San Diego, said he had concerns that proposed regulatory reforms of lending standards could be too little, too late - and could make it more difficult for borrowers in trouble to get out.

For now, he said, foreclosures are a small part of the market. If they continue to increase, he said, they could drag down the overall county market - which has maintained level prices although sales are down.

Catherine Williams, vice president for financial literacy with Money Management who lives in Chicago, said that homeowners should call their lenders as soon as they think they are going to fall behind to try to negotiate an arrangement: "Be forthright. This is your chance to make your case. Don't make a promise just to keep a lender happy."

For more information: www.realtytrac.com, www.moneymanagement.org

- Contact staff writer Ann Perry at (760) 740-5444 or aperry@nctimes.com.