Linn County homeowners facing foreclosure could find some good news in the mortgage relief bill signed by President Bush in July.

“The bill should have a positive impact on counties like Linn where homes are in the lower median price range,” said Eric Wiley, co-owner of Pacific Residential Mortgage. “I would think people will start to find out about the process.”

According to RealtyTrac of Irvine, Calif., which monitors foreclosures nationwide, 78 homes in Linn County — about one in every 590 — faced foreclosure in July. That is a 63 percent increase from June, when foreclosures numbered 48, and a 117 percent increase from July 2007, when there were 36.

Benton County numbers dropped 33 percent in July with foreclosure rates showing just one in every 4,360 homes. Still, that represented a 300 percent increase from last year when Benton County showed just two foreclosures for July.

The mortgage relief bill allows homeowners who can’t afford house payments to refinance into more affordable loans backed by the Federal Housing Administration.

The Linn foreclosure rate is the fifth highest in Oregon, according to RealtyTrac. Statewide the rate for July was one in every 812 homes. Nationally it is one in every 463.

Wiley, who is on the Mortgage Lending Work Group formed by Gov. Ted Kulongoski, said rankings can be misleading because of different ways states and counties report statistics.

“We studied companies who do rankings, including RealtyTrac and found they are accurate with foreclosure numbers but not so much in the rankings they release,” Wiley said.

Wiley thinks the new bill will work in favor of Linn County homeowners. Those who show they can afford a new loan would be eligible for FHA backing.

Other lenders aren’t expecting any real impact from the bill.

“We don’t even have any delinquencies in our portfolio,” said Elaine Eastman of Central Willamette Community Credit Union.

The situation is similar at Washington Federal Savings.

“Our mortgages are long-term. We don’t sell them to the government. We underwrite them knowing we have to collect on them,” said Branch Manager Stacy Hart.

Wiley thinks the rate of foreclosures is part of a cycle and markets should begin to improve, particularly in Oregon, which he says has been less hard hit than others.

“Foreclosures were at a historic low just two years ago,” he said. “We’re kind of making up for a lack of foreclosures in years past. I think things will start to normalize in 2009.”