Kauai surpassed all other islands to post the highest foreclosure rate in August, according to recent data from RealtyTrac.

The neighbor islands, which have struggled with higher unemployment rates and greater residential real estate drops than Oahu, saw the most foreclosure activity last month. More than 65 percent of the foreclosure activity in August came from outside of Oahu. Last month, RealtyTrac ranked Hawaii No. 20 among states for foreclosure activity. Across the state, 869 properties received foreclosure notices. In August one in every 583 Hawaii properties was in foreclosure.

“;Of the 203 metro areas that we track, Honolulu ranked No. 150,”; said Daren Blomquist, RealtyTrac marketing manager. “;Other areas of the state pulled the state ranking down.”;

Last month, RealtyTrac recorded 212 foreclosures, or one for every 138 households in Kauai. Lihue, Kauai's main city, was the top ZIP code for foreclosures in the Hawaiian Islands. There were 175 foreclosures in Lihue in August, an increase of 1,246 percent over the prior month and a 40 percent rise over the prior year. Other Kauai ZIP codes with noteworthy foreclosure activity included Kapaa, Koloa, Kalaheo, Kilauea and Anahola.

“;Kauai showed a strong increase going from 71 foreclosures in July to 212 in August,”; Blomquist said. “;It almost tripled.”;

Phil Fudge, principal broker of Kauai Landmark Realty, said 145 of real estate developer Brian Anderson's units in the Kauai Beach Resort went into foreclosure.

“;He got caught before he could sell them,”; Fudge said.

The Halelani Village, the largest condominium complex in Lihue, also had multiple foreclosures, he said.

“;Many of the buyers used subprime loans,”; Fudge said.

Distressed properties now command Kauai's market, he said.

In comparison, Maui, which usually has the lead foreclosure rate in the state, recorded 176 total foreclosures, or one for every 369 households. Kihei was the top island ZIP code for Maui's foreclosure activity. There were 64 foreclosures in Kihei in August, representing an 8.5 percent rise over the prior month and a 220 percent rise over the prior year. Other Maui ZIP codes worth noting for foreclosures included Wailuku, Lahaina, Kahului, Makawao, Kula, Haiku and Paia.

On the Big Island there were 179 foreclosures, or one per every 434 households. Kailua-Kona, a popular Big Island resort market, posted 78 foreclosures in August, making it the second-most active ZIP code for foreclosure activity across the isles. Kailua-Kona's foreclosure activity was unchanged from the prior month, but rose a staggering 3,800 percent from the prior year.

Other Big Island ZIP codes of note included Hilo, Waikoloa, Pahoa, Kamuela, Captain Cook and Keaau.

Oahu, on the other hand, fared much better than the neighbor islands. Oahu posted 302 foreclosures in August, or one per every 1,109 households. Still, Ewa Beach, which posted 65 foreclosures in August, was the third-worst ZIP code in the isles. Foreclosure activity in Ewa Beach, one of Oahu's most affordable neighborhoods, rose 14 percent from the prior month and more than 306 percent from the prior year. Kapolei, Mililani, Waianae, Kaneohe and Waipahu also posted high activity.