The number of U.S. properties for which a foreclosure filing was received surged 46% in March from a year earlier, helping push the first quarter's figure up 24%, as many lenders and servicers again executed foreclosures as influence from foreclosure prevention efforts by the U.S. government waned.

The figures were the highest monthly and quarterly totals since online foreclosure concern RealtyTrac began issuing its report in 2005.

Chief Executive James J. Saccacio noted much of the activity was new foreclosure actions, meaning "many lenders and servicers were holding off on executing foreclosures due to industry moratoria and legislative delays."

In fact, JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC), Fannie Mae (FNM) and Freddie Mac (FRE) all have said they have increased foreclosure activity in recent weeks after lifting internal moratoriums that temporarily halted foreclosures.

Foreclosure filings - default notices, auction sale notices and bank repossessions (REOs) - were reported on 803,439 properties in the first quarter, up 9% from the fourth quarter and resulted in one in every 159 U.S. housing units receiving one. For just March, RealtyTrac said the total was 341,180 properties, up 17% from the previous month.

The troubles in the residential sector are expected to continue throughout 2009, and not surprisingly, much of the pain is coming from former bubble markets that are now dominating RealtyTrac's report.

Nevada, Arizona and California posted the highest foreclosure rates in the quarter, with Nevada being hit the hardest as one in every 27 housing units received a foreclosure filing. The rate in Arizona was one in 54, while the figure was one in 58 in California.

Those three Western states along with Illinois and Florida accounted for nearly 60% of the nation's foreclosure activity in the first quarter.

The filings increases for the month and quarter came even as bank repossessions fell sequentially. Saccacio attributed that to potential processing delays, rather than foreclosure prevention plans. "It's very likely that we'll see the number of REOs increase again now that most of the moratoria has been lifted," he added.

On a positive note, Saccacio said demand is up in some of the harder-hit regions, as first-time homebuyers and investors seek bargains. But he noted it is unlikely the increase will offset the growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.

 
   -By John Kell, Dow Jones Newswires, 201-938-5285, john.kell@dowjones.com