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Mortgage defaults rose by one-third in August

(9/16/2011) The rate at which consumers fell behind on their mortgages surged in the month of August, while all foreclosure filings ticked up less significantly.

Default notices - those sent to consumers who fall behind on their mortgage payments for the first time -surged to 78,880, a 33% increase from the total seen in July, according to the latest monthly statistics from the data analysis firm RealtyTrac. That's the highest number observed in nine months, but still down 18% from the rate in the same month last year.

Consumers who are facing foreclosure may benefit from refinancing their existing home loans to make them more affordable. By checking the latest online rate tables to find the best local mortgage rates, homeowners can often cut the size of their monthly bills by as much as a few hundred dollars.

"The big increase in new foreclosure actions may be a signal that lenders are starting to push through some of the foreclosures delayed by robo-signing and other documentation problems," said James Saccacio, chief executive officer of RealtyTrac. "It also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process."

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