Foreclosure Rate Drops To 2007 Levels

SAN FRANCISCO (KCBS) - The number of U.S. homes in foreclosure has fallen to the lowest level since the end of 2007, just when the Great Recession kicked off following the housing bubble burst.

CoreLogic reports that 1.3 % of all mortgaged homes were somewhere in the foreclosure pipeline in May, a decent decline from a year earlier.

Even though foreclosures are now 65% lower than where they were in 2010 at the peak, they're still well above the average in the years leading up to the housing bust.

The states with the highest foreclosure rates are New Jersey, New York and Florida, each requiring that courts weigh in on the process, which lengthen the process compared to other states that don't require court involvement.