According to an Associated Press news release, over 2.3 million US homeowners faced foreclosure proceedings in 2008, representing an 81% increase over 2007.  RealtyTrac, a foreclosure listing firm out of California, has reported that over 860,000 properties nationwide were repossessed by lenders in 2008, over twice the numbers reported for 2007. 

And with the increasing number of layoffs, the declines in the stock market, and falling home prices, the worst is yet to come.   Moody's Economy.com has predicted that the number of homes lost by foreclosure will likely rise by an additional 18% in 2009, tapering off slightly through 2011.

Short sales have enabled many homeowners to avoid foreclosure, but there is a limited timeframe for distressed property owners to explore that option.   Surprisingly, as many as 8 out of 10 distressed properties go into foreclosure without ever seeking intervention or being listed on the open market.