During the first quarter of 2011, foreclosure filings, which include default notices, scheduled auctions, and bank repossessions, were reported on 681,153 properties, a 27 percent drop from a year ago. According to RealtyTrac’s U.S. Foreclosure Market Report, the number of properties that received default notices for the first time also fell, decreasing 17 percent from the previous quarter and 35 percent from the first quarter of 2010. James J. Saccacio, chief executive officer of RealtyTrac, said, though foreclosure activity fell to a three-year low, the market still faces the threat of a looming shadow inventory and the probability that foreclosure activity will pick up as lenders and servicers gradually work through the backlog of foreclosures. More here.