SEATTLE - In Seattle's hot real estate market a growing number of people are losing their homes in foreclosure.

KING

For most people losing their homes, there are several investors waiting to snap them up.

In Washington state the foreclosure rate is up nearly 30 percent over last year, and more than 1,000 homeowners have been going through foreclosure this past year.

For most of them suffering the loss of their home, there are several investors waiting in the wings to buy them up.

One family home in Seattle's Madrona neighborhood was about to be sold in foreclosure but at the last minute it was saved from the auction block.

The owner said the foreclosure has been very painful for her and her husband.

"We've been close to divorce a number of times over this issue, over debt, .bad investment and what that did to our house,” she said."

The growing number of foreclosures has produced a relatively new breed of real estate investors.

"Foreclosures are on their way up,” said real estate investor Kerry Hemmingson. “A typical purchase down here would be eighty cents on the dollar."

 At one auction where people were bidding to buy foreclosed properties, real estate investor. Phil Long said: "It’s unfortunate. They’re going to be foreclosed on anyway so to the extent that we can compete for that property and bid the price up, they get as much as they can out of the property."

For suffering homeowners, it’s a nightmare.

"I do think of them as vultures or sharks, they say they want to help you but they really want to buy your house," said one.

Why are more people losing their homes?

Experts say interest only and adjustable rate loans are enticing buyers into trouble.

"So they can get into their dream house when maybe they should have waited a few years when their income went up and not taken these risks," said lender representative Karen Gibbon.

Experts advise that if you are near foreclosure, contact your lender. The banks and mortgage companies are in the business of loaning, not owning homes. They will likely help you set up some kind of special payment program.