Foreclosure filings nationwide in May, which include default notices, auction sale notices, and REOs, increased 7 percent from the previous month and nearly 50 percent from a year ago, according to RealtyTrac's latest U.S. Foreclosure Market Report.

When it comes to the nation's foreclosure rate, one in every 483 households posted a foreclosure filing—a record-level high since the data provider began issuing the report in January 2005.

According to RealtyTrac CEO James J. Saccacio, May was the third straight month that has experienced a month-to-month increase in foreclosure activity and the 29th straight month the nation has seen a year-over-year increase. “The nationwide rate of increase for default notices and foreclosure auction notices slowed in May, with default notices up just 1 percent from the previous month and auction notices down 3 percent from the previous month. However, bank repossessions continued to surge in May—posting a double-digit percentage increase from the previous month and more than twice the number reported in May 2007—which pushed the total inventory of bank-owned REOs in our database to more than 700,000,” he said.

The states to record the top foreclosure rates: Nevada, California, and Arizona. Nevada lead the pack for the 17th consecutive month, registering the high of one in every 118 households filing for foreclosure. Nevada experienced 9,009 total foreclosure filings, a near 24 percent increase from April and 72 percent increase from May 2007.

The digs on California and Arizona: a foreclosure rate of one in every 183 households and one in every 201 households in May, respectively. California's foreclosure rate was 2.6 times the national average and RealtyTrac statistics show that Arizona's foreclosure activity not only increased by 12 percent from April, but nearly a staggering 119 percent from a year ago.

States that followed behind the top three in May to round out the top 10: Florida (one in every 228 households); Michigan (one in every 353 households); Georgia (one in every 378 households); Colorado (one in every 388 households); Massachusetts (one in every 406 households); Ohio (one in every 410 households); and New Jersey (one in every 467 households).

California, Florida, and Arizona took the top three spots for the highest foreclosure totals nationwide. California took first with 71,930 properties, with Florida and Arizona following at 37,364 properties and 12,959 properties, respectively.

To complete the top 10 ranking of highest foreclosure totals: Michigan (12,792 properties); Ohio (12,295 properties); Georgia (10,241 properties); Texas (10,063 properties); Illinois (9,670 properties); Nevada (9,009 properties); and New Jersey (7,430 properties).

California and Florida cities were among the hottest metro areas to experience nine of the top 10 foreclosure rates, for a second month in a row. The seven California cities that made it in the top 10: at No. 1 was Stockton (one in every 74 households); No. 3 Merced; No. 4 Modesto; No. 5 Riverside-San Bernardino; No. 7 Vallejo-Fairfield; No. 8 Bakersfield; and No. 9 Sacramento.

Cape Coral-Fort Myers, Florida took the No. 2 for the highest metro foreclosure rate in May with one in every 79 households receiving a foreclosure filing and Port-Lucie-Fort Pierce, Florida took No. 10.Jacqueline Gilbert | 06.13.08