In Febraury '09, national foreclosure numbers (completed at the final sale - Trustee's Sale or Judicial Sale depending upon the state) were 67% higher than in January (just one month prior). There were over 121,000 homes which were taken back by their respective lenders during February '09 (sadly, the shortest month of the year). 

In addition, the number of "pre-foreclosure" filings (or Notice of Defaults in Trust Deed states like California) were also at new highs (over 207,000). In most cases now, properties which receive a Notice of Default (or "pre-foreclosure" filings) now typically go all the way to final sale. In most cases now (97%), there is no third party (private or institutional investor) at the final auction sale so almost 97% of these properties end up back with the lender (via their REO department).

If February's record foreclosure pace continues, then lenders may take back over 1.2 million homes nationwide in 2009 alone. Completed foreclosures (in which they went all the way to auction sale) were up 138% in the Northeast, 90% in the Midwest, and 63% in the Southwest between just January and February of 2009. 

In California alone, foreclosures were up 67% in just one month. I am glad that February only had 28 days this year. Otherwise, the numbers would have been even SCARIER!!!! For the best REO investment deals and third party financing options, please continue to visit my website here.