Home Foreclosures Jump In February

Completed foreclosures jumped by more than 67 percent in February from January to the highest monthly total since the onset of the crisis, according to ForeclosureS.com. The spike follows a significant decline in foreclosures in January.

From the report:

In February, 121,756 new foreclosures were completed, up from 72,694 in January, which had seen a 26 percent drop from December’s 97,841 foreclosures. The February number topped the previous monthly high of 104,243 new foreclosures seen last September – then the high-water mark for this crisis…

“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 administrations 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 about 1.2 million homes back in lenders’ hands by year-end. 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.”