RealtyTrac released their new data for October today. Total foreclosures were 56,954 which is 13% higher than last year. But, this is an 18% drop from last month, and a whopping 44% drop from the all time high in August.
Below is a graph. Sorry for the gap for April and May of this year, but I can't find the data on the RealtyTrac website.
An important question needs to be asked. If foreclosures are beginning to trend downward, does the government need to institute policies to slow them? For any policy to be implemented it will likely take months to even get started. I beleive that the market will beat the government to the punch and fix the situation first.