U.S. home foreclosures spike in August

Home foreclosures and bank repossessions surged in the United States in August as increasing numbers of people failed to make their mortgage payments.

Foreclosure filings jumped 36 per cent in August from July. The 243,947 filings last month were up 115 per cent from August 2006, California-based RealtyTrac Inc. said Tuesday.

There was one foreclosure filing last month for every 510 households, the company said. However, there could be more than one filing per house, if the owner was carrying more than one mortgage.

Bank repossessions, which are included in the foreclosure figures, totalled 42,789 in August, up from 20,116 a year earlier, and 26,842 in July.

"The jump in foreclosure filings this month might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable rate loans are beginning to reset now," RealtyTrac CEO James Saccacio said.

While mortgage rates have gone up, making it tougher for homeowners to make their payments, home prices have stagnated or decreased and sales have slowed.