In February, foreclosure activity reached 38,840 properties - a 20 percent increase compared with the same month last year. 

Filings track the full spectrum of the process, from initial lender warnings to the formal repossession of homes after missed mortgage payments.

Although the February total was slightly lower than January, it marked the twelfth straight month of year-over-year increases, showing how Americans are increasingly struggling to pay their bills. 

'Foreclosure activity in February marked the twelfth consecutive month of annual increases, extending a gradual upward trend that began early last year,' said Rob Barber, chief executive of ATTOM.

Foreclosure starts - when lenders officially begin reclaiming a property - have climbed 14 percent from last year, while completed repossessions have jumped 35 percent.

This strain is already being felt in neighborhoods. As more homes are seized, and the market is flooded with discounted properties, surrounding house values drop, eroding equity for nearby homeowners who have kept up with their payments.

The surge in foreclosures reflects broader financial stress for Americans. Rising taxes and interest rates are pushing some behind on mortgages, while unpaid credit card bills and auto loans add further pressure.

Foreclosure is the legal process through which a lender takes back a home after a borrower falls behind on mortgage payments.

The increase is raising concerns that the housing slowdown could worsen, drawing uneasy parallels to the prelude of the 2008 financial crisis.

Homeowners struggling with mortgages are likely cutting back on essentials such as food, transportation, and healthcare. That cut back in spending can ripple through the wider economy.

Foreclosures remain most concentrated in a handful of states, highlighting uneven impacts across the country. 

Indiana had worst rate in the country, followed by South Carolina, Florida, Delaware, and Illinois.  Among metros with a population of 200,000 or above, Lakeland, Florida had the highest foreclosure rate with one filing per ever 1,075 homes. 

Next came Punta Gorda, Florida; Indianapolis, Indiana; Evansville, Indiana; and Columbia, South Carolina. 

Some big cities did see decreases, including Tucson, Arizona; New Orleans, Louisiana; Buffalo, New York; Philadelphia, Pennsylvania; and Minneapolis, Minnesota.  

The concentration of distress in these major housing markets underscores how widespread the pressure has become - and why concerns about a broader housing downturn are gaining urgency.