If you are thinking of filing for bankruptcy get a free bankruptcy review, or file yourself with our bankruptcy forms for just $19.95. Thanks for visiting!

RealtyTrac Inc. reports that the filings for foreclosure proceedings have increased 30% in February 2009 as compared to this time last year.

In a statement today, RealtyTrac reported that 290,631 homes received default notices, auction notices, or were seized by lenders. First-time foreclosure filings totaled 161,976, the highest figure in over 4-years, according to their records.

As the housing market crisis in the United States continues to worsen, President Barack Obama has put forth a $275-billion rescue plan to help mortgagees with notes that they cannot afford or have been devastated by depressed home values. Plummeting housing values have stolen nearly 2-1/2 trillion dollars from the residential market in 2008. Unemployment’s climb to February’s figures of around 8% are adding gasoline to the foreclosure fire. Unfortunately, President Obama’s latest in a string of bailout plans won’t change the reality for homeowners entering into or already involved in the foreclosure process.

The combined percentage of loans in foreclosure or at least one payment past due in the fourth quarter was just over 11%, the highest on record, according to the Mortgage Bankers Association in Washington. The percentage of loans 60 days past due and 90 days or more late also were at record levels.

On February 18th, 2009 - President Obama introduced a plan to use $75 billion of public funds to encourage lenders to modify or refinance home loans, avoid foreclosures, and bail-out homeowners behind on their mortgages. The President also conveyed that the Treasury Department would provide as much as $200-billion in additional backing for Fannie Mae and Freddie Mac to free up funding for new mortgages.

To qualify for a refinanced loan, applicants will have to fully document income with pay stubs and tax returns, and sign an affidavit attesting to “financial hardship,” according to Treasury.