U.S. foreclosure filings fell 3% in May from a month earlier, although bank repossessions set a monthly record, according to the market researcher RealtyTrac Inc.
Foreclosure filings were made on 322,920 properties in May, up less than 1% from a year earlier.
Banks repossessed 93,777 properties, a record high for the second month in a row and up 1% from April and 44% from a year earlier.
Default notices fell 7% compared with April and 22% compared with May 2009.
James J. Saccacio, RealtyTrac's chief executive officer, said, "The numbers in May continued and confirmed the trends we noticed in April: Overall foreclosure activity leveling off while lenders work through the backlog of distressed properties that have built up over the past 20 months."
