Homes in foreclosure decline by 130,000

Slowly, but surely, the foreclosure crisis seems to be abating.

The number of homes in foreclosure shrunk by 130,000, or 8.4%, in 2011, according to a report from CoreLogic, an economic research firm.

These are homes owned by borrowers who had slipped far behind on payments, forcing lenders to put them into the foreclosure process. The homes remain foreclosure inventory until they're sold -- either at auction or in a short sale, which is when a home is sold for less than the mortgage value -- or until homeowners are current again on payments.

There are dual reasons for the inventory drop, according to Mark Fleming, chief economist with CoreLogic. 

Source: CNN Money