Mary Anne Bryant is starting to see a new trend at the Central Virginia Housing Coalition in Fredericksburg.

Landlords behind on hefty mortgage payments for houses worth $500,000 and up are seeking Section 8 status at her office. The federal program picks up 70 percent of the tab for qualifying renters.

"They think that getting families in there paying a high amount of rent will save the house for them, but it's not working," said Bryant, who is the coalition's deputy director. "Four months later, the families have to move because the house is being foreclosed on."

The Central Virginia Housing Coalition, a U.S. Department of Housing and Urban Development approved counseling agency, used to see a case like this only once in a while, she said. But it has had seven in just the past two months.

"We're guessing that they were bought by investors looking to flip," Bryant said. "Now that the market is going south, they're trying to sell but can't so they're renting instead."

Foreclosures are on the rise nationwide, and the top 500 worst hit ZIP codes include nearby Manassas, Sterling and Woodbridge, according to a recent CNNMoney.com report.

The Fredericksburg area is having its problems as well. The number of foreclosures filed at Spotsylvania County's Circuit Court, for example, has jumped from one or two a month in 2005 to 41 this July, said Donna Prince, probate and fiduciary clerk.

"The numbers are dismal, but we had better get used to it because the blood-letting likely will continue for another 12 to 18 months," Alexis McGee, president of foreclosures.com said in a prepared statement. The company has published foreclosure property information for 20 years.

"It's a tough reality, but many more overextended homeowners not even in default yet won't be able to refinance because of tightened credit markets and will eventually lose their homes to foreclosure," she said.

Lisa Swidrak, owner of First Savings Financial LLC in Fredericksburg, blames real estate companies and builders who opened their own mortgage companies to capitalize on the recent housing boom.

"If you have a Realtor who says, 'You need to see my loan officer,' who do you think that officer works for? Not you," she said. "They're just trying to find a way to get you into that house."