At first glance, a one-month slowdown in Bell County foreclosures sounds like welcome news - a 12 percent drop in June, compared to May. But a foreclosure tracking firm says it is important to look at the big picture.

The total number of Bell County foreclosures for the first half of 2008 has reached its highest point in the last seven years, which is as far back as Foreclosure Listing Service Inc. has been keeping records in Central Texas. This means more borrowers who have fallen behind on payments are losing their homes and business property to foreclosure than at any time since 2001.

“Analysts and economists generally agree that it takes six consecutive months to declare there has been a true change in trends,” said George Roddy Sr., president of Foreclosure Listing Service Inc. “Month-to-month posting activity has been vacillating back and forth; and, compared to one year ago, monthly posting activity has been up for six successive months.”

Bell County also had the largest increase in Central Texas for the six-month period, 29 percent. Comal County was second with a 24 percent gain, and both Bexar and Williamson counties posted 21 percent gains.

In Bell County, veterans’ loans constituted 41 percent of the foreclosures, higher than any other single category. By comparison, for first quarter 2008, veteran loan foreclosures in Bexar County comprised 2 percent of total foreclosures.

“Certainly, this is because of the base’s (Fort Hood) influence. You have a lot larger share of veteran loans,” said Bonnie Brown, senior consultant with Foreclosure Listing, Inc.

What to do if you are falling behind

Evelyn Seastrunk is a Temple mortgage specialist who counsels and advises people who are having trouble making monthly payments. She says to avoid foreclosure, people first need to know where they stand.

“Seventy percent of subprime holders have no idea who they are paying. They have no idea where to go,” Ms. Seastrunk said.

Ms. Seastrunk said federal programs are available for people with adjustable rate mortgages, often called ARMs. These ARM payments can significantly increase after a low three-year interest rate (sometimes called a teaser) has expired.

“If you own an adjustable rate mortgage, they’re skyrocketing. Interest rates can go up to 12 percent,” Ms. Seastrunk said.

And, of course, higher interest rates mean higher payments. Mortgage professionals say adding high gas and grocery prices into the mix makes a recipe for disaster.

But there is hope from federal grants that can help homeowners avoid becoming another foreclosure statistic.

“The federal government has put these reserves aside … allocated all these grants,” Ms. Seastrunk said. “You can refinance, you can do debt consolidation, you can lower the interest rate.”