Official figures have confirmed that homeowners from Las Vegas saw the highest rate of foreclosures over the past year, and California and Florida, on the other hand, accounted for 17 of the country's worst markets, with unemployment extending the recession in housing.

Rapidly rising rates of foreclosures across Utah, Illinois, Oregon and Arkansas regions revealed that the home loan distress was now spreading to "previously insulated areas".

The figures have been shared by Irvine, California-based RealtyTrac Inc., in a report today. Also, the group has predicted that a record high of nearly 3 million houses will be seized during the ongoing year.

"The dam will break and we'll see a significant increase in foreclosures. The banks can't continue to hope the economy starts growing", said Michael Lea, a finance professor at San Diego State University.

"Areas like Provo, Utah; Fayetteville, Ark.; Portland, Ore.; and Rockford, Ill., all posted foreclosure rates above the U. S. average in 2009. And markets like Honolulu, Minneapolis and Seattle saw foreclosure activity increase at more than twice the national pace over the past 12 months--although all three of those markets still had 2009 foreclosure rates that were at or below the U. S. average", said RealtyTrac Chief Executive James Saccacio.