The worsening economy is taking its toll on homeowners in Nova Scotia, where the number of foreclosures has climbed dramatically in the past three years.

In 2008, there were 438 foreclosures, up from 363 in 2007 and 345 in 2006, according to Nova Scotia Department of Justice figures released Tuesday.

In Halifax county alone, there were 138 foreclosures, up 20 per cent over the last year, says the sheriff's office in Halifax.

"Our experience for November is that the number of insolvencies is up," Stan Hopkins, partner at Pricewaterhousecoopers, told CBC News.

"Although [homeowners are] able to maintain their payments as long as nothing goes wrong, as soon as you get someone's hours cut back or any type of thing changing, that's where the pressure comes on."

Earlier Tuesday, a foreclosed house on Atikian Street in Eastern Passage was sold at a Halifax sheriff's auction for $2,694.51, to a bank representative who was the sole bidder.

"There's been a lot of foreclosures on this street and in the area," Derek Stewart, who owns another house on the street, told CBC News.

Stewart bought his house two years ago with a zero down payment and a 40-year mortgage. His home is now worth $15,000 less than his mortgage.

A married father of three, he used to work for a national furniture company. He was unemployed for eight months before landing his current job selling giftware in Canada and the United States.

Stewart now takes home a lot less than he used to when he was employed with the furniture company.

"There's never been a question of putting food on the table, or paying the bills or keeping the lights on," said Stewart.

"Now with the way the economy is and with … the position we're in with the house now, it's hard to say what could happen."

With files from Paul Withers