Default Research, a leading provider of Seattle foreclosure data, reported that King, Pierce and Snohomish counties saw notice of trustee sales increase to 3,379 in the second quarter of 2008, up from 2,743 in the first quarter. The three hardest hit cities in the region were Tacoma, Seattle and Puyallap.

"There are a few markets in this tough economy that continue to be solid areas to invest, and Seattle is one," said Serdar Bankaci, the founder of Default Research. "Key market indicators are positive with a marginal increase in median home sale prices and a decline in inventories in the past month. If I had a choice of national regions in which to invest, this would be it."

Bankaci points out that in the Riverside and San Bernardino area of Southern California foreclosure rates per household are close to 10 percent. He said that, when compared to many California cities, the Seattle area is a great place in which to invest as the foreclosure rates increase in the state's largest counties.

"The best strategy to put profit in your pocket is to buy properties in the Seattle area at reduced rates and then rent immediately," said Bankaci added. "Additionally, there are great retail and commercial properties available in the preforeclosure market."