A new law in Illinois that aimed to help give homeowners facing foreclosure more time apparently led to a spike in problems during July, according to data released today by RealtyTrac.

The state ranked No. 5 nationwide for the number of foreclosure filings of 14,524 for the month, which includes default notices, scheduled auctions and bank repossessions. That overall foreclosure activity was boosted by an 86 percent surge in default notices, which bounced back from low levels in May and June, said RealtyTrac spokesman Daren Blomquist.

"The law just delayed the inevitable for some people," said Blomquist. "And we've seen this pattern in other states that enacted similar laws."

An Illinois state law enacted April 5 gave delinquent borrowers an extension of up to 90 days before the start of the foreclosure process.

Based on other data, Illinois ended up at the No. 8 spot, still sitting within the Top 10 as it has for most of the year. Its overall foreclosure rate increased 35 percent compared to the month before, and about 63 percent from July 2008.

The Irvine, Calif. data firm also said that nationwide foreclosure filings showed similar trends. Default notices, scheduled auctions and bank repossessions were reported on 360,149 U.S. properties during July, up nearly 7 percent from June and up 32 percent from the year before.

The report also shows that one in every 355 U.S. housing units received a foreclosure filing in July. Units include homes, condos and townhouses.

It's also the third time in the last five months that the nation had a record number of foreclosure filings.

Nevada, California and Arizona top the list for foreclosures nationwide, the RealtyTrac report said.