Foreclosure activity increased last month as over-indebted homeowners fell behind on their mortgage repayments, new figures show.

According to the latest monthly report by RealtyTrac, foreclosure filings were up five per cent in October compared to September.

Foreclosures totaled 279,561 for the month, which is an increase of 25 per cent on October last year, the report shows.

Thanks to a state law requiring lenders to contact homeowners and explore alternatives to repossession, California's foreclosure numbers were down on the month.

However, this was not enough to offset the overall increase, according to RealtyTrac senior vice-president Rick Sharga.

"An economic downturn is traditionally a precursor to foreclosures, even in a normal foreclosure cycle. This is not a normal foreclosure cycle by any means," he told Reuters.

The findings come after the US government announced plans of a support package to help homeowners struggling to pay their mortgage debt.

Help will be available to borrowers who are at least three months in arrears to ensure they are spending no more than 38 per cent of their income on housing.

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