Foreclosure activity jumps 7 percent

RealtyTrac's U.S. Foreclosure Market Report for October 2011 found foreclosure filings increased 7 percent from September and nearly 31 percent from October 2010. The report found one in every 563 U.S. houses were sent a foreclosure filing during the month.

Default notices increased 10 percent between October and September but dropped 23 percent compared with October 2010. Several states experienced significant increases in default notices on a month-over-month basis, with a 28 percent jump in Florida, a 50 percent increase in Pennsylvania and a 61 percent hike in Indiana.

Foreclosure auctions were scheduled on 85,321 properties in October, up 8 percent from September and down 38 percent from October 2010. In Florida, scheduled auctions increased 35 percent, they increased 43 percent in Minnesota and 38 percent in Illinois.

To help prevent foreclosures, consumers should evaluate their current budget and figure out what their monthly mortgage payment might be, The New York Times reported. In addition, first-time homebuyers should make sure they take into account extra expenses associated with owning a home before taking the plunge. Many consumers forget about the costs of heating and cooling an entire house, running a hot-water heater, taking care of pest control or landscaping tasks for the property.

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