Losing income and declining wages make it increasingly difficult for consumers to keep up with mortgage payments during the recession.

Foreclosures soared as a result, according to RealtyTrac, reaching a record 2.8 million filings last year. In addition to wreaking havoc on consumer morale and finances, this action can also cut hundreds of points off your credit scores and stay on your credit report for seven years.

The number of people in this situation has not decreased, despite the improvement in real estate conditions. Earlier this month, RealtyTrac reported that foreclosure activity increased 7 percent during the first quarter. This has continued into the spring, which in March alone reported a 19 percent increase in submissions over the previous month.

The latest foreclosure market data shows that cities hardest hit by the foreclosure crisis have struggled to recover. Ten of the top 20 cities with the highest foreclosure rate were located in California, while Florida was home to seven more. Nevada and Arizona made up the difference, according to the report.

Las Vegas ranked number one on the list, with the number of foreclosure filings nearly five times the national average. The 298,480 submissions in the first quarter represented a 13 percent growth over the prior quarter, but were 19 percent lower than in the first quarter of 2009.

Still, eight of the 10 meters with the highest foreclosure rates saw a year-over-year decline during the first quarter of 2010, according to the report.

“The declining foreclosure activity in some of the nation’s top foreclosure hot spots in the first quarter is largely the result of government intervention and other non-market influences, and is not a sure sign that those areas are still out of the woods when it comes to foreclosures, “said James Saccacio, CEO of RealtyTrac.

These government efforts include the Affordable Housing Modification Program and the Affordable Housing Refinancing Program. These were released by the US Department of the Treasury last spring to provide distressed homeowners with an alternative to foreclosure. HAMP has allowed more than 230,000 to receive permanent modifications to their mortgages, as reported by the Treasury.

Those who do not qualify for federal assistance can opt for a short sale foreclosure or deed in lieu of foreclosure, which are less financially damaging than foreclosure. However, these alternatives are likely to have the same amount of damage to a person’s credit score.