"Foreclosures have been contained as a threat to the housing market but there's still hot spots in the foreclosure market in different states that need to be stamped out," said Blomquist.
The U.S. housing sector got back on its feet last year, contributing to overall economic growth for the first time since 2005 as house prices and sales improved, and inventories tightened.
Repossessions fell more than 10 percent, with banks seizing 45,038 homes, as lenders turned to foreclosure alternatives such as loan modifications and short sales, in which the struggling homeowner is allowed to sell the property before it is foreclosed.
(Read More: No Money? No Worries. Home Lenders Ease Up Rules)
Although repossessions are still at an elevated level, February's amount was less than half of the peak of 102,000 homes that were seized in September 2010, Blomquist said.
Overall foreclosure filings — which include default notices, scheduled auctions and bank repossessions — were reported on 154,281 homes, an increase of 2 percent from January.
Florida had the highest foreclosure rate for the sixth month in a row, as one in every 282 homes there saw a foreclosure filing. That was more than three times the national average of one in every 849 homes.
As well, seven Florida cities ranked among the top 10 metros with the highest foreclosure rates.
(Read More: Slideshow—Where Have I seen That House?)