The number of homeowners on the brink of foreclosure dropped in October, the third straight month of decline but foreclosure filings is still 19 percent above from last year, RealtyTrac said Thursday.

Rising job losses continue to threaten the stabilizing trend and foreclosures are likely to remain high this year till 2010.

More than 332,000 households received at least one foreclosure-related notice in October, according to the foreclosure listing firm's report. That means one in every 385 U.S. homes received a foreclosure related notice last month. This includes notice of default or trustee's sale. That's down 3 percent from September. Banks repossessions accounted for more than 77,000 homes last month from 88,000 homes in September.

Lenders are delaying foreclosure as they evaluate which borrowers might qualify for the federal loan modification program according to Rick Sharga, senior vice president at RealtyTrac. "That's the reason there's been a buildup of homes that are seriously delinquent but not foreclosed," he said.

Nevada's registered the nation's highest foreclosure rate for the 34th month in a row, followed by California, Florida, Arizona and Idaho.

Also in the top 10 were Illinois, Michigan, Georgia, Maryland and Utah.

Among cities, Las Vegas had the highest rate with one in 68 homes there received a foreclosure filing in October, more than five times the national average.

The government, last week, signed the extension and expansion of a key federal tax credit for homebuyers that have been the reason for boosting home sales recently.

Buyers who have owned their current homes for at least five years are eligible for tax credits of up to $6,500, while first-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers have to sign a purchase agreement by April 30, 2010, and close by June 30.

"Anything that stimulates buying activity," Sharga said, "will go a long way to mediate the foreclosure problem."