Sean O’toole, CEO of Foreclosure Radar, was interviewed for a CNN Money story released today and spilled the beans early. Since its now in the public domain I can let out the headline foreclosure data early. Make sure to click that link and read the story. It pertains to the new FHA bailout law and the $4 billion waste of money for states to rehab foreclosed houses.

July was another record month for foreclosures in the state of CA with all hell breaking lose and banks taking back roughly 26,500 homes for $12.5 billion. ’Record-breaking’ is not a good thing in the foreclosure universe. This 25% increase breaks all records ever posted and all foreclosure estimates.

If past percentages hold true, next week when the national numbers are released by other data sources, the numbers should also show a similar increase. However, not everyone gathers data the same way so I can’t guaranty what others will report. If their data do mirror this report, I do not know how the markets will react to this but many times in the past, they have not responded very well to ’surging foreclosure rates’.