Plus, there is now a shortage of supply in the market. So even though homes continue to wind up in foreclosure, the overall impact on home prices is more muted.

The five states with the highest number of completed foreclosures for the 12 months ending in August 2013 were: Florida (111,000), Michigan (60,000), California (58,000), Texas (43,000) and Georgia (40,000).These five states accounted for almost half of all completed foreclosures nationally.

-- Written by Shanthi Bharatwaj New York.

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