October saw the sharpest drop in the number of homes foreclosed, with home repossessions declining by 9 percent from September.
The drop comes after major lenders such as such as Bank of America, GMAC Mortgage and JPMorgan Chase & Co. suspended action against homeowners when it was discovered that thousands of foreclosures may have been mishandled.
"The numbers probably would have been higher except for the fallout from the recent 'robo-signing' controversy," James Saccacio, RealtyTrac's CEO, told CNN Money.
Most of those lenders now say they will start foreclosures again, but probably at a much slower rate.
"We will still see some softness in the numbers in November, just because of the lag time from when you announce something like this and when you can actually enact it and then reverse it," said Rick Sharga, a senior vice president at RealtyTrac.
Despite the temporary moratorium on foreclosures, banks are on track to repossess more than 1 million homes this year.