A record number of foreclosure filings took place during April 2009, but the number of repossessions fell 11%. Foreclosures in April exceeded even March's blistering pace with a record 342,000 homes receiving notices of default, auction notices or undergoing bank repossessions, according to a regular industry report. One of every 374 U.S. homes received a filing during the month, the highest monthly rate that has been recorded in four-plus years of record keeping.

Instead of a dip, filings inched up 1% from March and rose 32% compared to April 2008. There were 63,900 bank repossessions, the last stop in the foreclosure process. More than 1.3 million homes have now been lost to foreclosure since the market meltdown began in August 2007. The lion's share of April’s filings was in the early stages of the process, such as notices of default. Bank repossessions actually fell 11% for the month, compared with March. That's due to the many legislative and company moratoriums that have prevented the foreclosure process from starting on delinquent loans. Because fewer loans entered the process in past months, there were fewer getting all the way to repossession. But now that those moratoriums are over, the volume of foreclosure filings is increasing.

Not helping, of course, is the steady erosion of home prices. The National Association of Realtors reported record home price losses Tuesday. These home price declines will lead to more foreclosures. The loss of home value put many more mortgage borrowers underwater, meaning they owe more on their loans than their homes are worth. That increases foreclosure rates in two ways: Underwater borrowers have no home equity to draw on to pay for unexpected expenses such as big medical bills or major car or home repairs. That's makes them more likely to miss payments. And when home values fall far below mortgage balances, homeowners often walk away from their loans.