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AZ drops to No. 4 in national foreclosure ranking

Arizona home foreclosure

(Photo illustration by Gabe Turner)

The number of Arizona homes in some stage of the foreclosure process continued to slowly drop in August.

The state dropped two slots and now has the fourth-highest foreclosure activity rate in the nation.

Data released Thursday by foreclosure tracking firm RealtyTrac shows lenders actually repossessed more than 3,400 homes in August, nearly the same as July. But new foreclosure filings dropped to about 4,300 last month from about 4,800 homes in July.

Arizona posted a 29 percent drop in homes being repossessed or receiving foreclosure filings in August from August 2011.

RealtyTrac says one in every 360 Arizona homes was in some stage of the foreclosure process last month.

Illinois jumped to No. 1 and Florida No. 2 as their foreclosure soared. 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