LAWRENCE - Foreclosure auctions in the city nearly quadrupled over the first three months of this year compared with the same period last year.

In addition, the 87 auctions held during the first quarter of 2007 are more than half of the 145 auctions that resulted from failed mortgages during all of 2006. The 148 foreclosure petitions filed over the first three months of this year more than doubled last year's first quarter totals.

Those are some of the statistics cited yesterday during a two-hour hearing on proposed state legislation to reduce mortgage foreclosures - a statewide problem which has worsened in Lawrence because of predatory lenders feasting on poor people with minimal English skills.

"When you're seeing a dramatic jump of about 300 percent in the first quarter over the same time last year, it doesn't bode well what's going to happen this year," said Andrea Ryan, housing manager of the city's Department of Community Development.

Ryan, who presented data showing foreclosure trends in Lawrence, was one of several city officials, housing advocates and representatives from the banking industry who testified yesterday at Heritage State Park. The hearing was hosted by state Sen. Susan Tucker, D-Andover, who chairs the Housing Committee, and state Rep. David Torrisi, D-North Andover.

Torrisi filed legislation last December to establish a $10 million home preservation fund that would provide relief to homeowners who have been victims of abusive mortgage lending practices and grants to nonprofit organizations that provide education and counseling to homeowners facing foreclosure. The bill also would require mortgage brokers to be licensed and would set new standards designed to protect homeowners from illegal or predatory practices.

"Some people have told me they think it's a bailout bill," Torrisi said.

But the legislative package provides much more, he said, including requirements to ensure that borrowers have access to critical information they need to keep current on their payments and avoid foreclosure. Counseling would be required for homeowners receiving high-cost loans, he said.

"The state can play a constructive role in leveling the playing field for consumers," Tucker said, "We must address the problems in the industry that are leading to record foreclosures in Massachusetts and Lawrence."

Several people who testified yesterday said only a neutral party should be involved in counseling borrowers on how to avoid the risks of foreclosure.

The concept of lenders being the primary source of education to potential home buyers poses a conflict of interest, said Mayte Rivera, director of the Community and Enterprise Development Center at Northern Essex Community College.

Juan Bonilla, home ownership counselor for LawrenceCommunityWorks Inc., said legislators should take a close look at the relationships between real-estate agents and mortgage brokers.

While the federal guidelines prohibit nonprofit organizations from steering borrowers to certain lenders, Bonilla noted that nothing is done when real-estate agents make referrals.

"Realtors have brought mortgage brokers from outside the state to operate within their own offices," Bonilla said.

In one case, Bonilla said a real-estate agent told the home buyers, "You have to go through this broker if you want to buy this house." The homeowners lost their house a couple of months ago, Bonilla said.

Rafael Delarosa, 56, of Lawrence testified yesterday that he could wind up losing his three-decker house on Stearns Avenue because of some false and misleading advice he got two years ago.

"She told us the minimum we'd be paying (a month) would be $2,500, including taxes and insurance," Delarosa said of his mortgage broker.

But Delarosa wound up with mortgage payments of $3,700, with the insurance and taxes included. And the 30-year fixed-rate mortgage he expected turned out to be two loans - one for two years and the other for 15 years.

He and his wife earn a combined $2,400-a-month as hotel housekeepers in Medford. They were counting on rent money from the triple-decker to help pay off the mortgage.

But one of the apartments is vacant and new tenants are unlikely after he put a "for sale" sign in his yard three months ago.

The mortgage brokers with the most Lawrence homeowners winding up in foreclosure last year don't have strong ties to the city, according to A. Michael Ruderman, a graduate student at the University of Massachusetts Lowell.

"They are far away from Lawrence," Ruderman said of research he compiled, which showed only one Massachusetts company (from Norwell) among the top six.

"Five of them are far away from Massachusetts," he said, noting they were from California.

Is your mortgage healthy?

The Lawrence Housing Partnership is offering some free advice to homeowners who are concerned about being at risk of foreclosure.

What: A mortgage check-up clinic.

When: 2 to 4 p.m. Sunday

Where: Northern Essex Community College, 78 Amesbury St.

Who: More than 30 housing specialists and mortgage lending experts will be available to help local homeowners understand their mortgages and offer advice on how to keep their mortgages healthy and avoid financial problems that could lead to foreclosure.

Must bring: Mortgage and closing documents. Participants who can show proof of home ownership also will get a free credit report, provided by Metro Credit Union and Sovereign Bank.

Forbidden: Lenders will not be marketing loan products or banking services. This is an educational event that doesn't involve refinancing or applications for any loan products.

For Details: Call the Lawrence Department of Community Development at 978-794-5891.

Foreclosure Auctions in Lawrence

Year:First Quarter:Year

2004:14:55

2005:14:79

2006:23:145

2007:87:?

Petitions to Foreclose in Lawrence

Year:First Quarter:Year

2004:12:56

2005:67:210

2006:64:418

2007:148:?

Editor's Note: Statistics provided by the Lawrence Department of Community Development, based on information compiled by The Warren Group of Boston.