On Tuesday Foreclosure.com released their latest figures showing that July registered the highest number of new
residential foreclosures in 2006, with Michigan, Colorado and Ohio among the states hardest hit.

Michigan currently has the highest new foreclosure rate per household, with one in every 1,085 homes currently in foreclosure. This marks the highest foreclosure rate for a state this year.

According to Foreclosure.com's monthly nationwide data report, there were 28,130 new residential foreclosures in July - a 4.95 percent increase over June and a 10 percent increase from July 2005.

While the company tracked an overall increase in new foreclosures, July statistical data reveals the active foreclosure inventory for the month dropped to 86,562 - a decrease of 3.12 percent from June. The decline in active foreclosures can be attributed to many of these properties being purchased, according to Foreclosure.com.

"New residential foreclosures across the nation are up this year, driven in large part by increases in adjustable rate  mortgages," said Foreclosure.com President and CEO Brad Geisen. "That means investors and homebuyers - if they haven't already - will be able to find many great bargains in this segment of the real estate market."

"Put simply, foreclosures are hot and getting hotter," Geisen added. "And this is just the beginning."