February marked the 26th consecutive month with a national year-over-year increase in foreclosure-related filings, according to the latest report from Calif.-based Realty Track Inc. While February foreclosure activity was down 4 percent from the previous month, it remains up 57 percent from the same month a year ago.

In addition, the number of foreclosed properties that didn’t sell at auction and ended up going back to lenders soared more than 110 percent last month versus February 2007, RealtyTrac said. Last month, some 46,508 properties were repossessed by lenders, up from 22,114 a year earlier.

California hit hard
If you think those numbers look pretty dismal. Check out the figures from California’s Riverside County. I nearly choked on my lunch as I read the report. In February 2007, only 65 homes in that county went unsold at auction and returned to a lender. Last month, the total was 1,346. This blows my mind. From excessive home building to the subprime sector to inflated home values, Riverside has become a microcosm of the U.S. housing market.

Los Angeles County saw a similar rate of homes going unsold at auctions. Some 215 homes went back to the banks in February 2007, compared with 1,670 last month, according to RealtyTrac. California had the second-highest foreclosure rate, with one in every 242 households receiving a foreclosure-related notice. The state had 53,629 properties on the foreclosure track, the most of any state. But Nevada still holds the No. 1 ranking as foreclosure capital of the country.

Lenders typically consider borrowers delinquent after they fall three months behind on mortgage payments. In the 12-month period ended in February, 45 states saw an increase in the number of homes that had received at least one filing, the Associated Press reported.

In Florida, 32,447 homes reported at least one filing, up more than 69 percent from February last year and up more than 7 percent from January. Rounding out the top 10 states with the highest foreclosure rates were Arizona, Colorado, Michigan, Ohio, Georgia, Indiana and Tennessee.

Failed initiative
The latest data suggest many homeowners across the nation continue to struggle with mortgage payments, despite highly publicized efforts by government, financial institutions and consumer advocacy groups to modify loan terms or work out long-term repayment plans for distressed borrowers. A recent story last week on msnbc.com unveiled the Hope Now initiative’s most recent failures. The news story reported that hundreds of callers into the Hope Now hotline have been left frustrated by long wait times, lack of follow-up and relatively minor loan modifications that have failed to help.

The number of homes facing foreclosure is still a small percentage of all U.S. homes. But the ever growing problem continues to drive home values down across the country and keep housing inventory at record highs.

Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@homescape.com.