U.S. Foreclosure Filings Rise 12 Percent in February (Bob Ivry)

  U.S. foreclosure filings last month jumped 12 percent compared with a year ago as homeowners struggled with declining home values and higher adjustable mortgage rates.

 (Update2)

By Bob Ivry

March 26 (Bloomberg) -- U.S. foreclosure filings last month jumped 12 percent compared with a year ago as homeowners struggled with declining home values and higher adjustable mortgage rates.

More than 130,000 homes entered foreclosure last month, according to a report from RealtyTrac, an online listing of foreclosed properties. That's the second-highest since RealtyTrac began collecting data in January 2005.

The worst housing slump in more than a decade is pushing down home prices and hampering the ability of owners to refinance their mortgages. Borrowers with poor or incomplete credit are also vulnerable to mortgages that are resetting at higher rates than introductory or so-called teaser rates.

``The rise in foreclosures over the past year probably only marks the beginning of the problem,'' Jan Hatzius, a Goldman, Sachs & Co. economist, wrote in a March 23 report. ``The main reason to expect further deterioration is that house prices are likely to fall significantly in 2007, with further declines possible in subsequent years.''