Foreclosures are still apart of the market

Foreclosures Drop in September, Still up 99% for Year

Foreclosures were down 8 percent in September compared with August when they hit a 32-month peak. However, foreclosures are still up 99 percent compared to September a year ago.

There were 223,538 foreclosures in September - or one in every 557 households. California, Florida, and Nevada led the nation, according to RealtyTrac, an online market for foreclosure properties. Other states with foreclosure rates ranking among the nation's 10 highest were Michigan, Arizona, Georgia, Ohio, Colorado, Texas, and Indiana.

In 39 states, foreclosures fell in September. "It's too early to tell if September's numbers represent a one-month lull or if they could signify that more buyers and investors are getting back in the market and snatching up discounted foreclosure properties," says James Saccacio, RealtyTrac's chief executive officer, in a statement.

Foreclosure rates fell in Texas and Michigan, but both states still reported more than 14,000 foreclosure filings for the month. Georgia reported 11,926 foreclosure filings, down 14 percent from the previous month, but still the sixth highest state total.

Illinois, which was No. 11 in total filings, was the only state to see an increase in foreclosures in September versus August.