According to a new report released, the total number of foreclosure filings fell to its lowest level since December 2006.

The report from RealtyTrac showed that a total of 127,790 properties had foreclosure filings during the month of June, which is 14 per cent lower than the previous month and 35 percent from the same month in the previous year. The level is the lowest recorded since December 2006, before the financial crisis.

During the first half of the year 801,359 properties were linked to a foreclosure filing, which includes notice of default, schedule auction and bank repossessions. The figure is 19 per cent lower compared to the previous six months and 23 per cent lower compared to the first half of the previous year.

Total number of bank repossessions fell to a total of 248,538 during the month of June. The banks in the country had reposed more than 671,000 homes during 2012. Total number of foreclosures has been falling as fewer customers default on loans and banks opt form modifications and short the sales to avoid expensive foreclosures that run for 523 days in the country.

"Halfway through 2013 it's becoming increasingly evident that, while foreclosures are no longer a problem nationally, they continue to be a thorn in the side of several state and local markets, particularly where a backlog of delayed distress has built up thanks to a lengthy foreclosure process," said Daren Blomquist, vice president at RealtyTrac in a press release.