The number of foreclosures dropped in January but was still up from the same period last year according to a monthly report released Thursday.  The number could have gone higher if not for government efforts to stall the lenders in the foreclosure process.

Foreclosure filings which include default notices, auction sale notices and bank repossessions were reported on 274,399 homes during January, down 10% from December but 18% higher than January 2008, according to RealtyTrac, an online marketer of foreclosed homes.

Repossessions by lenders amounted to 66,777 homes.

The decline in foreclosure was largely attributed to the foreclosure moratoriums implemented by government-controlled mortgage finance companies Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500).

 "The extensive foreclosure efforts on the part of lenders and government agencies appear to have impacted the January numbers," RealtyTrac CEO James Saccacio said in a prepared statement.

The trend toward foreclosure moratoriums has gained considerable momentum lately.

Meanwhile, the government’s Office of Thrift Supervision (OTS) urged more that 800 OTS-regulated institutions to suspend all foreclosures while President Barack Obama’s top economic officials develop plans to keep borrowers in their homes.

"OTS-regulated institutions would be supporting the national imperative to combat the economic crisis by suspending foreclosures until the new Plan takes hold," OTS Director John Reich said in a prepared statement.

The Obama administration plan, which Treasury Secretary Timothy Geithner revealed on Tuesday, will devote $50 billion to foreclosure prevention efforts. Its aim is to reduce monthly payments for owner-occupied, middle-class homeowners battling foreclosure.

Hardest hit areas

Nevada top the hardest hit areas with one of every 76 households had a filing during January. California came in second with one for every 173 followed by Arizona and Florida with one for every 182 and one for every 214 respectively.