Foreclosure filings fell 8 percent year-over-year in February, with 206,900 U.S. properties receiving some form of filing, according to RealtyTrac's U.S. Foreclosure Market Report.

But don't be fooled by these numbers. Foreclosure activity is expected to increase 15 percent this year compared to 2011, according to RealtyTrac's Daren Blomquist.

While foreclosure activity was pushed down by decreases in some of the larger states, 21 states reported annual increases in foreclosure activity, a level not seen since November 2010