The latest RealtyTrac report shows there were foreclosure filings on nearly 215-thousand properties in May.
That's a two-percent drop from April and a 33-percent drop from the same time last year.
RealtyTrac's CEO warns that while fewer homes are receiving default notices, the number of unsold bank-owned properties keeps rising.
Nevada continues to lead the nation in foreclosures.
One in every 103 housing units in that state receiving a filing last month.