As unemployment rises, so does the number of foreclosures across the nation. U.S metropolitan areas that were once "relatively insualated" from foreclosures such as Chicago, Houston and Seattle, are now witnessed a growing number of foreclosures hitting the market.

In a total count, the foreclosure activity rose in 149 of the nation's 206 largest metropolitan areas in 2010, according to RealtyTrac Inc., a foreclosure listing firm. Weve actually had a sea change in whats causing foreclosures, from the overheated home prices and bad loans to a second wave of foreclosures actually caused by unemployment and economic displacement, says Rick Sharga, a senior vice president at RealtyTrac.

Some states actually showed a decline in the number of foreclosures. Las Vegas, Nevada, once showing one of the highest foreclosure rates in the country, showed a 7% drop in an annual comparison.

Many believe the decline in these areas is due to lenders taking steps to delay foreclosure actions while the looked for a management system to deal with the flow of distressed properties. Sharga stated, We believe were going to see an abnormally high growth of foreclosure activity in the first quarter and we do expect that 2011 will be another record year for foreclosure activity and bank repossessions."