45 percent

Percentage of existing-home sales in February that involved distressed-sale properties, including short sales and REOs. Short sales occur when properties are underwater—the remaining mortgage is greater than the sale price of the home. An REO is a real-estate-owned property, one that's been seized by a bank through foreclosure.

The "REO tsunami," as the surge in distressed-home sales has been described, contributed to a 15.5 percent year-over-year decline in median home prices nationwide in February, according to the National Association of Realtors.

"Distressed homes need to be cleared off the market in order for the housing market to make a sustainable recovery. The housing stimulus of home buyer tax credit and historically low mortgage rates should further help bring buyers to the marketplace," wrote Lawrence Yun, the NAR's chief economist, in a commentary.—Daniel DiClerico | e-mail | Twitter

Essential information: Foreclosures hurt individual families and drive down the value of surrounding homes, as we reported last week, and that can lead to a sense of fearclosure or foreclobia.To read about the Consumers Union take on foreclosures, visit DefendYourDollars.org. That and this blog are both published by CU.