Foreclosures drop in October

The number of homes in foreclosure dropped in October from the previous month and was down 9 percent for the year as the housing market showed signs of improvement.

About 1.3 million homes, or 3.2 percent of all U.S. homes, were in any stage of the foreclosure process in October, down from 1.4 million homes in September, according to data released Monday by Irvine, Calif., research firm CoreLogic.

The number of completed foreclosures also dropped in October to 58,000 from 77,000 the month before, the company said. That marked a 25 percent decrease. Completed foreclosures were down 17 percent from October 2011.

Though the figures are encouraging, they’re a far cry from normal as the housing market tries to recover from the collapse of the subprime bubble. From 2000 through 2006, there was an average of 21,000 completed foreclosures a month.

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