In its U.S.Foreclosure Market Report, RealtyTrac Home stated that foreclosure filings in May totaled 261,255, up 7 percent from April. The figure is a total of default notices, auction sale notices and bank repossessions.
"May was the third straight month where we've seen a month-to-month increase in foreclosure activity and the 29th straight month we've seen a year-over-year increase," James J. Saccacio, chief executive officer of RealtyTrac, said in a statement.
In April, home foreclosure filings had risen 4 percent from March.
The surge in foreclosures indicates an increasing number of homeowners are struggling to make mortgage payments amid the worst U.S. housing market downturn since the Great Depression.
RealtyTrac, based in Irvine, California, said the national foreclosure rate in May was one foreclosure filing for every 483 U.S. households.
"The nationwide rate of increase for default notices and foreclosure auction notices slowed in May, with default notices up just 1 percent from the previous month and auction notices down 3 percent from the previous month," Saccacio said.