The number of Americans facing serious debt problems continues to soar amid recent reports that a record number of homeowners are now facing mortgage problems.

The Mortgage Bankers Association recently released statistics showing that foreclosures in the third quarter of 2008 had climbed to 6.99 percent of all loans on residential properties consisting of one to four units.

One potential bright spot in the figures was the slight drop in the number of foreclosure actions that were initiated in the third quarter. However, there was still a jump in the number of properties that are 90 days or more past due.

Given the latest number, observers remain somewhat pessimistic about the future.

"We have not gone into past recessions with the housing market as weak as it is now so it is likely that a much higher percentage of delinquencies caused by job losses will go to foreclosure," said Jay Brinkmann of the Mortgage Bankers Association. He added that the national numbers are being especially weighed down by ongoing difficulties in California and Florida real estate.

Overall, Brinkmann estimates that 2.2 million foreclosure actions will have been initiated in 2008, with 580,000 in the second quarter and a slightly small 575,000 in the third.

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