Real estate foreclosures in the US decreased by -10% in January 2010, according to the latest data from RealtyTrac, although the rate at which properties are being repossessed have slowed having hit a record high in 2009.

However, despite the improvement in January, figures are still +15% higher than in January 2008.

James Saccacio, chief executive, RealtyTrac, said: ‘January foreclosure numbers are exhibiting a pattern very similar to a year ago - a double digit percentage jump in December foreclosure activity followed by a -10% drop in January.

‘If history repeats itself we will see a surge in the numbers over the next few months as lenders foreclose on delinquent loans where neither the existing loan modification programmes or the new short sale and deed-in-lieu of foreclosure alternatives works.’

Foreclosure rates in Nevada continued to be the worst as one in every 95 homes were filed in January 2010, which is more than four times the national average. Arizona moved up to second with a +4% increase in foreclosure activity, with one in every 129 homes affected.

Elsewhere, California saw foreclosures fall by over -10% as one in every 187 homes received a filing in January, however it is still the third highest rate in the country. Florida wasn’t far behind as one in every 187 homes received a filing, a -15% decrease from the December 2009.

Phoenix was the only one of the top ten metropolitan areas hardest hit by the foreclosure crisis to post a monthly increase, as one in every 102 homes received a filing in January, a +4% increase. Las Vegas had the highest metropolitan foreclosure rate with one in every 82 homes receiving a filing for the month, a -2% drop from December 2009 and a -21% fall compared to January 2009.

Overall default notices decreased -12% from December 2009 but were still +4% above January 2009. Scheduled foreclosure auctions also fell -11% from December and remained +15% higher than January 2009. Activity in real estate owned property sales fell -5% from December 2009 but grew +31% from January 2009.