According to RealtyTrac, the foreclosure crisis in the US affected nearly 938,000 properties in the July to September quarter, compared with about 890,000 in the prior three months and, if this continues, foreclosures are set to hit about 3.5 million this year, up from more than 2.3 million in 2008.

Unemployment continues to be the main reason property owners are falling into trouble.

Already the unemployment rate is at a 26 year high of 9.8% and it isn’t expected to peak until the middle of next year.

Although the Obama administration reported a record 500,000 property owners have received help since the programme was launched in March, new defaults are still exceeding the number of borrowers getting help. google_protectAndRun("render_ads.js::google_render_ad", google_handleError, google_render_ad); Analysts have pointed out recently, however, that many property owners falling into default don’t qualify and they have predicted a new wave of foreclosed properties hitting the real estate market next year and thats likely to further depress property prices.

Banks repossessed nearly 88,000 homes in September, up from about 76,000 a month earlier. Arizona, California and Florida continue to dominate the foreclosure ratings. While Nevada had the highest rates in the third quarter, Arizona came in second followed by California, Florida and Idaho, then Utah, Georgia, Michigan, Colorado and Illinois.