The number of U.S. properties in some stage of foreclosure is on the rise in 2006 as higher interest rates force more homeowners into default and softening housing prices give defaulted homeowners fewer options to avoid foreclosure.

Contrary to popular opinion, it’s not just run-down homes in poor neighborhoods that are vulnerable to foreclosure. The recent surge in creative home finance options such as interest-only and negative amortization loans have allowed buyers to stretch their finances to the breaking point so they can afford homes that previously were out of their price change. Any small change in personal income or spending — including increased monthly payments due to higher interest rates on an adjustable rate mortgage — could nudge these homeowners into default and possibly foreclosure. And the higher a home’s price, the smaller the pool of potential buyers for that home, which means homeowners of high-end homes may have more trouble selling their property to avoid foreclosure.

RealtyTrac’s national foreclosure database featured a number of million-dollar homes in some stage of foreclosure in June, including the homes pictured below. For home buyers at the more expensive end of the real estate market, these types of properties can represent good investment opportunities.

(Note: Property status is subject to change at any time if the homeowner pays off the amount owed or if the property is sold to a third party.)