Forclosures to peak at the end of 2010 as the housing market and US economy struggle with the aftermath of the recession, according to the Mortgage Bankers Association cheif economist.

Many lenders have issued a moratorium on foreclosures, causing a drop in the number of discounted, bank-owned properties hitting the market this year. But some economists expect that a wave of foreclosed properties could hit the market in 2010, dampening home prices again.

Those delayed bank-owned properties aside, rising unemployment will lead to a growing number of foreclosures at least through the end of next year.