Unfortunately, it looks like the foreclosure crisis will get worse before it gets better.

Six million loans are either past due or in foreclosure in the second quarter of 2009, the highest level ever recorded. Worse, loan defaults are not the only cause of foreclosures. In some areas, unpaid property taxes are triggering foreclosures, even for homeowners who are otherwise current on their payments.

In recent years, some cities and counties that are strapped for cash have sold their delinquent tax bills to private firms. The firms, which typically charge double-digit interest rates and steep fees, get to keep what they collect. They also succeed to the right to foreclose liens encumbering property, taking priority over mortgage holderss.

Local government cannot undo their previous tax lien sales. But changes in federal policy can reduce the foreclosure risk from unpaid property taxes. This is an issue with which Congress will have to grapple.