Foreclosure activity falls to 42-month low in May

Default notices drop to lowest monthly total since December 2006

Foreclosure filings on U.S. properties fell 33 percent year-over-year in May, hitting a 42-month low, according to a report from foreclosure data site RealtyTrac.

One in every 605 housing units, or 214,927 properties, received a foreclosure filing — default notice, scheduled auction, or bank repossession — last month. That’s a 2 percent drop from April and a 33 percent drop from May 2010.