"There's really no reluctance anymore," said Chairman-elect of the Mortgage Bankers Association David Kittle. "Lenders lose $40,000 to $50,000 on every loan that goes into foreclosure," he said.

Kittle said some lenders were sending staff door-to-door to engage homeowners in discussions about rewriting their contracts, USA Today reported Wednesday.

Kathleen Day of the Center for Responsible Lending said the door-to-door maneuver may just be a publicity stunt, the newspaper reported.

Many banks lack the extra staff needed to help homeowners renegotiate or systematically review mortgages to see if they qualify for federal programs.

Hope Now, a national alliance of lenders, financial counselors and investors, said 2.26 million homeowners avoided foreclosure since July 2007 by changing repayment plans.

As many as 400,000 homeowners could benefit from a new Federal Housing Administration program, while another 400,000 could find relief through Bank of America, which purchased Countrywide Financial and then settled a complaint against it with terms that include helping qualified homeowners.

But foreclosures are still rising, RealtyTrac said.

The industry observer said foreclosures rose 12 percent in August compared with July, USA Today reported.