Foreclosure filings were down 37% from a year ago, but and down 15% from the previous month.
This was driven by a drop in foreclosure starts which fell to the lowest level since December 2005.
"While foreclosures will likely continue to stage a weak rally in certain markets next year as the last of the distress left over from the Great Recession is dealt with," said Daren Blomquist at RealtyTrac.
"It is highly unlikely that there will be a foreclosure comeback that poses any major threat to the solid housing recovery that has now taken hold."
But some states and cities continued to struggle with foreclosures.
At the state level, Florida continued to post the nation's highest foreclosure rate, with one in every 392 homes receiving a foreclosure filing. Delaware and Maryland rounded of the nation's three states with the highest foreclosure rates.
We drew on RealtyTrac's report to highlight the 14 metros with the highest foreclosure rate.
Note: The metros are ranked by foreclosure rate, i.e., one in every X homes received a foreclosure filing.