Walls Closing In On Homeowners

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Parents of baby arrested

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Dangerous pet food? A maker of dog and cat food sold under Wal-Mart, Safeway, Kroger and other store brands recalled its wet “cuts and gravy” style pet food Friday after reports of kidney failure and deaths. SEE A4

Boy died of overdose after being given adult sedatives BY VANESSA HO AND BRAD WONG P-I reporters

Soon after their baby died, Lorrie Peck and Thomas Boettger created a caring Web site to help parents who’ve lost a baby to SIDS. They offered inspirational writings and links to support groups. They presented

Felt like a ‘hit in the gut’

A LETHAL DOSE

“The unanswered questions that SIDS leaves behind are difficult in their own,” the couple wrote on their Web site. Except that baby Thomas did not die of SIDS, or sudden infant death syndrome, according to a San Diego County medical examiner. He died of an overdose of two kinds of sedatives given to him by his father, the examiner said. Seattle police arrested the couple on a fugitive warrant ear-

their services to create a tender, yearlong “tribute page” for grieving parents, for a suggested donation of $100. They wrote of their own anguish, of finding 6-month-old Thomas Michael Boettger Jr. – or “Boo-Boo Man” as they called their son – still and blue in his crib last October.

Toxicology report: Six-month-old Thomas Michael Boettger Jr. suffered a fatal dose of two sedatives – Unisom and Benadryl or Sominex. He also was given Zantac. Official cause of death: Acute doxylamine and diphenhydramine intoxication.

SEE BABY, A6

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Walls closing in on homeowners

Valerie Plame told Congress that White House and State Department officials “carelessly and recklessly” blew her CIA cover in a politically motivated smear of her husband – a move that stunned her. SEE A2

Foreclosures show creative financing is coming back to haunt market

No passport to go to B.C. The U.S. government will approve Washington state’s pilot project for use of enhanced driver’s licenses, rather than passports, by Americans crossing the border into British Columbia. SEE B1

ALSO IN THE NEWS NATION/WORLD “Hazy memories”: The White House backed off its earlier story that former White House Counsel Harriet Miers first raised the idea of firing U.S. attorneys, saying now that memories are ”hazy.” A3 School lunches: Millions of children eat in school cafeterias that don’t get the twice-yearly health inspections required to help prevent food poisoning. A4

SEATTLE Voter suspicions: A building industry group asked the U.S. attorney to investigate possible voter registration fraud. B1 Peace marches: Anti-war activists will rally Sunday and Monday to protest the war in Iraq on its fourth anniversary. B1

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Devaney White has lived in her Central District home since 1981. Repeated refinancings have boosted what she owes from $35,000 to $382,500, her lawyer says. BY AUBREY COHEN P-I reporter

BUSINESS

Devaney White kept getting offers to lower her mortgage payment. “They sent me letters,” she recalled. “They showed up and came in. They called me on the phone.” And White kept buying it, refinancing her home or taking out a second mortgage on it 10 times between 1998 and 2005 – boosting the amount she owed from $35,000 to $382,500, according to a complaint her lawyer filed as part of her bankruptcy proceedings. White, a 78-year-old Boeing janitor who has owned her home since 1981, sat in her living room Wednesday below a portrait of one of her sons in a U.S. Marines uniform. Two of her other three sons were in the Army and her husband served in the Navy for more than two decades. White now supports two sons and a grandson, who all live in her modest house.

Second Life coming: Linden Lab, the creator of Second Life, is opening an office in Seattle. C1 Feds subpoena Costco: The company was ordered to turn over documents for an investigation into stock options given executives. C8

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White is part of a growing trend, which may be bad news for the economy in general, buyers and homeowners.

Cloud cover blocks needed vitamin D BY CHERIE BLACK P-I reporter

Browsing through the vitamin aisle at a local Walgreens, a woman tossed a box of multivitamin pills into her basket. Listed among the bevy of nutrients was vitamin D, which, the woman

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A big problem

SEE HOUSING, A6

RISING FORECLOSURES The number of home foreclosures rose dramatically last year in King County, and U.S. foreclosures have continued to increase in 2007.

Foreclosures Per month in King County 700 600 500 400 300 200 100 0

2005

2006

Source: RealtyTrac

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Her lawyer, Melissa Huelsman, said it took months to piece together loan documents – and she still doesn’t know everything. According to White’s complaint, some mortgages came months after previous loans and, in June 2002, she signed up for two mortgages in three days; the second was rescinded when an escrow agent noticed. Some of the money went for a new roof and to pay off credit card debt, much of which stemmed from her husband’s illness before he died in 1997. But tens of thousands of dollars went to fees and prepayment penalties, according to her complaint. “My mortgage kept on going up,” White said.

admitted, she didn’t really think twice about. “It’s just one of the whole list of things I’m sure I’m not getting in my diet, so I might as well get it in the pill,” she said. She’s right – she’s almost certainly not getting enough in her diet. But she’s probably not get-

ting enough from her supplement either. And neither are most people in Seattle, where sunshine – a major contributor to the body’s production of vitamin D – can be a distant memory during much of the winter. In fact, local experts say Seattleites need far more vitamin D than the Food and Drug Administration’s recommendations – perhaps twice as many interna-

tional units, and maybe even more than that. “Vitamin D is good for bone health, immune health and cancer prevention,” said Kelly Morrow, nutrition instructor at Bastyr University. “But most of the year, we’re just not getting enough vitamin D.” Often called the “sunshine vi-

“Vitamin D is good for bone health, immune health and cancer prevention.” – Kelly Morrow, nutrition instructor at Bastyr University

SEE VITAMIN, A8

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SEATTLE POST-INTELLIGENCER ❘ SATURDAY, MARCH 17, 2007

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HOUSING: Some expect things to get much worse in Seattle FROM A1 Last year, there were 41 percent more foreclosures in King County and 42 percent more nationally than in 2005, and the number could get higher, according to RealtyTrac data. The reason? Wall Street investors poured money into the booming housing market in recent years and lenders found increasingly creative ways to get it to borrowers – mortgages with adjustable rates, or ARMs, mortgages with an artificially low “teaser” payment, loans made without verifying borrowers’ incomes – particularly using subprime mortgages, which are more expensive loans for those with poor credit, and in markets where prices rose faster than paychecks. About 20 percent of Seattle mortgages had adjustable rates in 2004, according to the most recent U.S. Census Bureau numbers. A Monday report from the Center for American Progress, a left-leaning think tank in Washington, D.C., said subprime loans made up 17 to 18 percent of U.S. mortgages issued in 2006 and 13 percent of all outstanding U.S. mortgages. “There are huge numbers of people in foreclosure because of being in ARMs or being put into loans that are completely inappropriate for them,” said Huelsman, who specializes in foreclosures. Although ARMs are the biggest problem in Seattle, she said, she expected more problems with interest-only loans, which became popular only in the past couple of years. Those most vulnerable are people like White, who were talked into a series of ever-moreexpensive loans, and others who could only barely afford their initial payments. When home prices increased by double-digit percentages in the past few years, owners could refinance or at least sell for more than they owed. That’s changing. The non-partisan Center for Responsible Lending in Durham, N.C., projected in December that nearly one in five subprime mortgages issued in the past two years would end in foreclosure, up from one in 10 issued in 2002. Part of the problem, said Erin Rearden, a mortgage default counselor with the Seattle nonprofit Solid Ground, is that many borrowers don’t understand their loans. “A surprising number of people don’t even know if they have an adjustable-rate mortgage or a fixed, or don’t even know what their interest rate is,” she said. The number of foreclosures Rearden sees is relatively stable, but those in trouble seem to be in deeper, she said. “What we’re seeing now is people who have permanent reduction in their in-

come or no income. They’re six, seven, eight months behind.” Just about everyone has refinanced to take equity out of their homes, she said.

Hitting Wall Street Foreclosures cost borrowers their homes and ruin their credit, but that’s not why they’re making news, Huelsman said. “You’re seeing it because it’s hitting Wall Street.” Investors were happy until recent months, when more and more loans started going bad. Now, some lenders are failing and others are scaling back subprime lending. Earlier this month, five federal financial regulatory agencies urged subprime lenders to better ensure borrowers were informed and could afford payments. White got loans through some of the biggest names in mortgage lending and banking, including New Century, Ameriquest, Accredited Home Lenders, Washington Mutual, Chase and CitiFinancial, according to her complaint. Most companies named in the complaint declined to comment or did not reply to requests for comment. A Citi spokesman said in a written reply that White’s loan had a fixed rate that was not expensive and would have fallen under Citi guidelines, including verification of income and ability to pay. Mike Fratantoni, senior director of single-family research and economics for the Mortgage Bankers Association, said in a January report that he expected “some modest increases” in delinquency and foreclosures nationally, but rising values would protect borrowers and the market. The increase in foreclosures wouldn’t be enough to soften Seattle’s market, thanks in large part to area job growth, said Adam Stein, president of the Washington Association of Mortgage Brokers. He added that many Seattle homeowners still have significant equity. But Huelsman expects things to get much worse. “Wall Street is definitely downplaying how bad it’s going to be,” she said.

Wider fallout Tuesday revealed the potential for bad loans to drag down the wider economy, when new data on surging home foreclosures helped send the Dow Jones industrials sliding 240 points. If investors limit the money into the market, getting loans may get harder just as more foreclosures boost supply. And that could cause home prices to dip or at least not go up as fast. Stein, whose firm is in Auburn, said he’s seeing the market’s impact on loans. Six months ago, he said, he could get 100 percent financing for someone

More businesses invest in misfortune But buying foreclosure homes is complicated BY AUBREY COHEN P-I reporter

As sad as foreclosures are for those who lose their homes, more and more companies see them as an opportunity to make money and help buyers find a bargain. This month, the Bellevue technology services company DepotPoint launched ForeclosurePoint.com, a service to help people buy foreclosure homes. “Foreclosure properties will now become a ‘deal’ for all,” the company proclaimed in its news release. Foreclosure homes can be a deal, but buyers must understand a complicated process, search out liens that can be substantial and arrange financing. Companies such as ForeclosurePoint.com offer free access to foreclosure property listings in King, Kitsap, Pierce, and Snohomish counties, and detailed information, access to specialists and financing help for a fee.

FORECLOSURE HELP

BY THE NUMBERS

41%

2.9%

9.6%

King County increase in home foreclosures from 2005 to 2006. 42% in U.S.

Washington home-loan payments 30 or more days past due in the last quarter of 2006. 4.95% in U.S.

Washington subprime loan* payments past due in the last quarter of 2006. 13.3% in U.S.

66th

0.24%

1.29%

Rank of Seattle among the largest 100 metro areas for highest foreclosure rate.

Washington loans starting foreclosure process in last quarter of 2006. 0.54% in U.S.

Washington subprime loans starting foreclosure. 2% in U.S.

*Loans for people with poor credit. Sources: RealtyTrac, Mortgage Bankers Association.

with verified income and poor credit. Now, people with low credit scores need 10 percent or 20 percent down payments. “I think you are going to see some reduction in the number of home buyers,” he said. “It’ll be a negligible difference.” But Stein worries about talk of restricting access to loans that could be risky, but also could be healthy when used properly. “What concerns me is they’re lumping in everything that appears to be new and different.” The Center for American Progress says rising foreclosures could drag down property values and make mortgages harder to get in poor neighborhoods. The cost of foreclosures to lenders – which the center pegged at more than $50,000 each – and Wall Street concerns

BABY: Mom says couple took turns medicating boy FROM A1 lier this week, after prosecutors in San Diego charged them with felony child abuse. Peck and Boettger, who are both 38 and last lived in Shelton, pleaded not guilty Thursday to the fugitive charge. According to a police document filed in San Diego, where Thomas Jr. died, the couple told police their son had colic and acid reflux and that they often medicated him with Mylanta and Sominex, which they crushed and mixed in water. On the morning Thomas Jr. died, the couple was staying at a relative’s house in San Diego, when the baby woke up crying “heavily.” Boettger told police two versions of giving his son over-the-counter adult medications. He first said he gave his son Zantac, commonly used for ulcers and acid reflux, and a halftablet of Sominex, a sleep aid. He later told police he gave his son half-pills each of Unisom, Zantac and Benadryl in syringes and bottles. After administering the medications, Boettger laid his son in his crib. About two hours later, Peck, thinking the room sounded too quiet, found him dead. The San Diego County Medical Ex-

After administering the medications, Thomas Boettger laid his son in his crib. About two hours later, Lorrie Peck found him dead. The San Diego County Medical Examiner’s Office ruled out SIDS as a cause of death. aminer’s Office ruled out SIDS as a cause of death. Peck later told police that she and Boettger took turns medicating their son, and that she had researched the drugs on the Internet to “learn” how to administer them. When he died, the baby was extremely small for his age. Thomas Jr. had also never received an immunization shot, had bruises on his right arm, and had seen a doctor just once. As police investigated the couple, they began preparing to flee, according to the court document. They asked a neighbor in Shelton to watch their cat, saying they were going to Mexico or Canada. They told people they were running from police. When Seattle officers arrest-

“There are over 800 homes in King County alone that are in some stage of foreclosure,” Prakash Kondepudi, chief executive of DepotPoint, said in a statement. ForeclosurePoint isn’t alone. RealtyTrac of Irvine, Calif., has established itself as a source of foreclosure data. And, in January, DataQuick Information Systems of San Diego added foreclosures to the property data it sells. “With a nationwide surge in mortgage foreclosures, this list complements the marketing efforts of users in search of quality leads,” the company said in its news release. Solid Ground, a Seattle non-profit that offers home-buying classes, spends more time helping those facing foreclosure. “I would have a problem making my million off of someone else losing their home,” said Pam Gates, manager of the organization’s housing counseling and homelessness prevention programs.

“But some people aren’t bothered by that kind of thing.” Some businesses are less legitimate. Presenting themselves as foreclosure rescuers, some operations promise to help people facing foreclosure but really end up costing clients money – and homes, said Melissa Huelsman, a Seattle foreclosure lawyer. “That is actually where I’ve seen the biggest increase in my business in the past two or three years,” she said. On Wednesday, three Washington businesses agreed to settle charges that they took unfair advantage of people facing tax foreclosure. Fiscal Dynamics Inc. and Cumulative LLC, both of Tacoma, and Northwest Assets of Seattle told owners they would pay off the delinquent taxes so foreclosure could be avoided, offered owners as little as $200 to transfer a title or interest in the property and ended up letting the property go to foreclosure and pocketing the difference between the taxes owed and the sale price, according to a statement from state Attorney General Rob McKenna’s office.

ed them Monday, just outside Northgate Mall, they found handcuffs and a loaded 9 mm pistol on Boettger. “They were panicking, (thinking) this could have been misconstrued,” said Jack Miles, a port commissioner in Shelton and a friend of the couple. He said they had told him about how they had medicated their son, and that they believed they had done nothing wrong. “They didn’t mean to overmedicate their child, if that’s what it was. They’re very sorry for what happened,” Miles said. “They’re wonderful people. Why would they want to kill their son?” He said the couple had struggled mightily with Thomas Jr.’s death. At church, Peck, whom he said was a midwife, had sobbed at the sound of a baby’s cry and the pastor’s announcement of recent births. Miles said Boettger had bawled to him, “I want my son back, I want my son back.” Extradition to San Diego could take a few months. The couple are being held in the King County Jail, each on $1 million bail.

SEATTLE P-I

may be behind increasing corporate efforts to stave them off. A Wednesday Standard & Poors report said prominent loan companies are starting to take action early by, for instance, checking in with borrowers well before interest rates adjust and opening more options to delinquent borrowers.

Back at home White’s family didn’t know about her problem until they noticed her tax forms, Huelsman said. As Huelsman dug through paperwork, she found what the

◗ Call your lender and a housing counseling agency certified by the U.S. Department of Housing and Urban Development. ◗ Document conversations with your lender, and use registered or certified mail in correspondence.

Urban Development: www.hud.gov/ local/wa/homeownership/foreclosure. cfm ◗ Washington Department of Financial Institutions: dfi.wa.gov/consumers/ guide_home_loans.htm ◗ Solid Ground: 206-694-6766 or solid-ground.org

◗ Beware of scams, particularly phony credit counselors or signing over a deed to someone who promises to take over payments.

◗ NeighborWorks Center for Foreclosure Solutions: nw.org/ network/neighborworksprogs/ foreclosuresolutions/

◗ Don’t sign papers you don’t fully understand.

◗ HOPE for Homeowners: 888-995-HOPE, 995hope.org/

MORE INFORMATION

Sources: Solid Ground, U.S. Department of Housing and Urban Development.

◗ U.S. Department of Housing and

complaint alleges to be inaccurate information lenders put on applications to make it look like White could pay. For example, the complaint says an Ameriquest employee failed to include her income information when he took her application in 2002, but later a computer-generated version said she made more than $5,800 a month as a “service tech” at Boeing. White said she actually gets about $3,750 monthly from her job, a pension and Social Security. For the moment, she’s paying about $2,500 a month toward

her mortgage. Huelsman is seeking damages from the lenders, and also is talking with White and her family about selling and moving to an apartment. “She’s going good right now. But she’s not going to be able to work forever.” Meanwhile, White said she got a new mortgage offer in the mail Tuesday. “They said, ‘Don’t worry about anything. We’re going to take care of you.’ ” P-I reporter Aubrey Cohen can be reached at 206-448-8362 or [email protected].

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Irish leader backs Bush immigration plan THE ASSOCIATED PRESS

WASHINGTON – Irish Prime Minister Bertie Ahern, at the White House to celebrate St. Patrick’s Day, said Friday he hopes Congress will embrace President Bush’s immigration proposal that would affect illegal Irish immigrants in the United States. “The resolution of this issue would mean enormous amounts to so many Irish men and women,” Ahern said of the 50,000 to 70,000 illegal Irish immigrants in the U.S. “I fervently hope that they will, in the not too distant

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future, be able to step away from the shadows and into the sunshine of this great country.” In a traditional trek to the White House on St. Patrick’s Day, Ahern gave Bush a bowl of shamrocks, a symbol of warm relations with the U.S. Ahern said he hoped to talk with Bush about several challenges facing the international community, including poverty, Middle East peace, global warming and air transport and trade liberalization. Bush also nudged Congress to pass his guest-worker pro-

gram for immigrants. “Irish Americans remind us of our heritage as a nation of immigrants and our duty to remain a welcoming society,” Bush said. Bush, who wore a green tie for the occasion, noted contributions of more than 34 million Americans who claim Irish ancestry. Nine signers of the Declaration of Independence were Irish. “St. Patrick’s Day is an occasion that unites two distinct groups of Americans,” he said. “Those who are of Irish descent, and those who wish they were.”

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