6% drop in foreclosures reported in May

According to the RealtyTrac report provided on Thursday foreclosure filings in May dropped by 6% as compared with April but increased by 18% on a year-over-year basis. Foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on nearly 321,500 properties in the month. May was the third straight month in which filings exceeded 300,000.

The Irvine, Calif., consultant, said that one of every 398 U.S. housing units was the subject of a foreclosure filing in the month. RealtyTrac reported fewer defaults and auctions but a 2% increase in bank repossessions.

Nevada remained the state with the highest foreclosure rate, with 1 in 64 housing units the subject of a filing. California was second with 1 in every 144, and Florida was third with 1 in every 148.

Among large cities, Las Vegas led the way with one in every 54 households receiving a filing. Four California metropolitan areas - Stockton, Modesto, Riverside-San Bernardino and Merced - were next, followed by Cape Coral-Fort Myers, Fla.; Bakersfield, Calif.; Orlando, Fla.; Vallejo-Fairfield, Calif.; and Miami.