There have been three in my neighborhood in the past few weeks. The house next door to ours, which is brand new, has been on the market for over a year. They’ve dropped the price over $50,000 and still can’t sell it. Between the prices dropping, and loans being harder to obtain, alot of people down here who were “flipping” are now going into foreclosure on properties they can’t dump. It’s not just the subprime loans that are going into foreclosure.

Late summer brought no relief from soaring foreclosures. The number of homes in some stage of default jumped 36 percent month-over-month in August, according to a regular monthly survey.

Delinquencies and defaults more than doubled year over year to 243,947, according to August figures released Tuesday by RealtyTrac, a marketer of foreclosed properties. RealtyTrac’s forecast is for total foreclosure filings to exceed 2 million this year.

“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,” James Saccacio, chief executive of RealtyTrac, said in a statement.

October is expected to be a peak month for hybrid adjustable rate mortgages (ARMs) to reset, with the interest rates on some $50 billion worth of loans poised to go up dramatically.

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