LAWRENCE, Mass. -- Massachusetts foreclosures are up 82 percent in the past year, and one of the hardest-hit areas is a Merrimack Valley neighborhood.

NewsCenter 5's Amalia Barreda reported that the Arlington neighborhood in Lawrence, which is densely populated, largely Latino and overwhelmingly poor, has the distinction of having, per capita, the largest number of foreclosures in the state.

In 2006, there were 425 foreclosure filings in the city -- 100 of them in the Arlington neighborhood, where up to half the residents live below the poverty level.

More than 2,200 foreclosure filings were made statewide last month, according to foreclosuresmass.com. That number is up 85 percent from February 2006.

"The population was targeted," said Ana Luna, of the community group Arlington Community Trabajando.

Luna, who counsels victims of foreclosure, said the neighborhood was a prime target for subprime lenders ready to make the American dream come true for low-income, Spanish-speaking people who don't understand what they're getting into.

"They did their marketing and they basically got the people to apply for loans that later on they were not going to be able to afford," Luna said.

Since most of the properties in the neighborhood are two- and three-family homes, community activists said foreclosure is having a devastating ripple effect. When homeowners lose their homes, families renting from them also find themselves out on the street.

The ripple effect also extends to the small businesses who depend upon the community.

"We're going to start seeing businesses losing business. We're going to start seeing the neighborhood get even worse than what it looks now," Luna said.

"It's very discouraging because in one way you are looking at people from your own church. We are looking at people across the street from you who are helping you get into a very bad financial situation," said community activist Mayte Rivera.

Flooded with calls, community activists said they are trying to help and educate homeowners in trouble.