Video: Maple Valley woman fights to keep home from foreclosure

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SEATTLE - At the heart of the economic problems are billions of dollars worth of bad real estate loans. And at the heart of those loans are people losing their homes. The numbers are growing in Seattle, including one woman who is trying to hang on to her place.

You've heard the term "sold on the courthouse steps." In King County, they still auction homes that way, just across from the courthouse on the steps of the King County Administration Building.

This has been a tough week on top of a tough year for homeowner Georgianna Alcazar, because her home is on the list to be sold.

"I don't know where we're going to be if that happens," said Alcazar.

Alcazar and her family have been in their Maple Valley home for five years, but refinancing into an adjustable rate loan resulted in payments quickly climbing to more than $2,500 a month.

She says they have the money to get caught up on their payments, but she says the mortgage company refuses to take their money and pressed for a sale. On Thursday, she and her husband filed for Chapter 13 bankruptcy, which should put any sale on hold.

"I have faith in our attorney. Not the system, but in our attorney, who is working the system so we can stay," said Alcazar.

But back at the auction, it's a nervous time. Did the paperwork to stay the sale go through? It was postponed to October 24 - the words from a trustee are a relief.

"I am extremely happy that it's not being sold at this time," said Alcazar. She has another month, but a lot could happen in that month.

There are buyers at these sales representing investors. One of those is Kerry Hemmingsen with Foreclosure Solutions.

"In the three counties, King, Pierce and Snohomish, there were 350 properties per week scheduled for auction. The last two weeks, there's been over 600. It's been a huge increase," said Hemmingsen.

As for Alcazar, she's optimistic that through legal channels she'll be able to stay in her home, but she expresses disappointment in the federal bailout that there's no provisions there for helping people avoid foreclosure.

Alcazar has also been working with ACORN, the Association of Community Organizations for Reform Now, that offers a variety of services to try and help people stay in their homes.