Lenders repossessed 43,597 U.S. homes last month, which RealtyTrac reports is the lowest level since September 2007. The housing sector is still far from a full-fledged comeback, however, based on the growing number of new foreclosure filings. The volume was up 2 percent in March, the second consecutive month of increases. Moreover, the timeline for foreclosures to run their course is stretching out even longer, rising to an average of 477 days in the first quarter from 414 days at the end of 2012. "At the 50,000 foot level, things are getting better," says RealtyTrac's Daren Blomquist. "But when you start drilling down and looking more closely at individual markets, there's still a lot of distress that needs to be worked through." The nation's hardest-hit markets for foreclosure last month were Florida, Nevada, and Illinois.