According to the latest figure released, the number of foreclosure filings in the US has fallen to its lowest level in five years.

According to a new report by RealtyTrac, released on Thursday, the total number of reported default notices, scheduled auctions, and bank repossessions added together to 180,427, which is its lowest level since the July of 2007. The level is 7 per cent lower than the previous month and 16 percent from September of 2011.

Daren Blomquist, vice president of RealtyTrac said, "The five-year low, combined with the fact that the year-over-year decrease in foreclosures was in its twenty-fourth straight month, is evidence that we're past the worst of foreclosure crisis."

The fall in the month of foreclosures in September helped reduce the number of total foreclosures for the third quarter to the lowest level since the fourth quarter of 2007. The total number of foreclosure starts, which includes initial default notices or scheduled auctions, fell 12 per cent in the US in September from August.

Blomquist pointed out that the lesser number of foreclosures is not always positive as it could mean an increase in short sales, which means selling the house before it is formally repossessed. This could bring down the prices of homes in the country by increasing supply.