In a RealtyTrac, Inc. report released last Thursday, more than 279,500 U.S. homes received at least one foreclosure-related notice in October, an increase of 5 percent over the previous month.  Over the same month last year, the increase was 25 percent.

Moreover, one in every 452 housing units received a foreclosure filing, such as a default notice, auction sale notice or bank repossession while more than 84,000 properties were repossessed in October, RealtyTrac said.

Still, the main causes are the strict lending policies, plunging home values and a demoralizing economy which is affecting the housing market.

By the end of the year, RealtyTrac sees more than a million bank-owned properties to add on the existing inventory growing to about a third of all properties for sale in the U.S.

The three states where foreclosures were at its highest are Nevada, Arizona, Florida.  Nevada got nation’s highest for the 22nd straight month in October where one in every 74 homes received a foreclosure filing.

Arizona saw one in every 149 housing units receive a foreclosure filing, and in Florida it was one in every 157 homes.  Others in the top ten were California, Colorado, Georgia, Michigan, New Jersey, Illinois and Ohio.

However, California had the highest total number of foreclosures in last month. The rate in that state was down 18 percent from September. In California, lenders are now mandated to make contact with the borrowers at least 30 days before filing a default notice. A similar law in North Carolina gives borrowers an extra 45 days.

Among cities, Las Vegas had the highest October foreclosure rate among the 230 metro areas tracked in the report, with one in every 62 housing units receiving a foreclosure filing.

Four Florida metro areas ranked in top 10 — Cape Coral-Fort Myers was second, Miami third, Fort Lauderdale eighth and Orlando 10th. California also had four metro areas in the top 10: Stockton fourth, Merced fifth, Riverside-San Bernardino seventh and Modesto ninth.

The remaining member of the top 10 was Phoenix, which came in sixth.