That's according to a report released Thursday by online marketing company RealtyTrac.
It found during the three months ending September 30th, short sales in which homeowners had fallen behind on mortgage payments soared 22 percent from the same period last year.
By comparison, short sales by people current on their payments went up 17 percent.
In a short sale, homeowners sell at a price that is less than what they owe the bank, and the bank agrees to absorb the loss.
Currently, homeowners don't have to pay federal tax on the unpaid mortgage debt because of a bailout-era law.
The law expires on December 31st.