Foreclosure crisis deepens in February, with Florida at center

By Palm Beach Business.com

SACRAMENTO, Calif. — The foreclosure crisis continues, seemingly unabated by government and private efforts to stem the tide. And Florida continues to be at the epicenter of the crisis, according to the latest data from Foreclosures.com.

Completed foreclosures in February reached the highest monthly total since the foreclosure crisis began, soaring by more than 67 percent over January’s numbers.

In February, 121,756 new foreclosures were completed, up from 72,694 in January, which had seen a 26 percent drop from December. February also topped the previous monthly high of 104,243 new foreclosures seen last September — then the high-water mark for this crisis.

Foreclosures.com also found the number of pre-foreclosure filings – the original filings that can lead to a foreclosure – increasing to 207,703,the highest monthly total since the foreclosure crisis began.

Florida:

—Was second in the nation, with 14,243 foreclosures in February, up 42.3 percent from January. California led the nation with 23,988.

— Topped the nation with 53,175 homes in pre-foreclosure, up 23.5 percent from January.

— Was second in real estate owned by lenders, with 14,243 properties in February, compared with 10,007 a month earlier.

“Despite the efforts to stem foreclosures by government and many banks, the hopeful signs of the last quarter of 2008 and January didn’t follow through in February,” says Alexis McGee, foreclosure expert, educator, and author. “Many homeowners are in trouble and rising unemployment continues to threaten to intensify the problem.”

Foreclosures increased across all regions despite temporary halts by major banks and Fannie Mae and Freddie Mac, primarily in the second half of February, in anticipation of the Obama administration’s foreclosure mitigation effort. Fannie Mae and Freddie Mac previously had foreclosure moratoria from Nov. 26 to Jan. 31, which helped to slow down foreclosures during that period, and reinstated the moratoria in mid-February. Nearly all the bank moratoria have since expired or are about to expire.

“Annualizing the first two months of this year, if foreclosures were to continue unabated, we could end up with another 1.2 million homes back in lenders’ hands by year-end,” McGee said. “However, I am hopeful that our new administration’s plan to stem the foreclosure tide will take hold and we will see fewer foreclosures by year end,” adds McGee, also president of ForeclosureS.com. “The Fed means business, and they’re throwing money — lots of it — behind the foreclosure crisis.”