Foreclosures in the U.S. are falling, data released today by foreclosure tracking firm RealtyTrac shows. Last year, 1.8 million properties were foreclosed, down 2.7% from 2011, and down 36% from 2010.

While the national rate is falling, many of the states hardest-hit by the housing crisis and recession continue to be weighed down by a higher rate of homes in the foreclosure process. Foreclosure activity actually increased in 25 states. In Florida, foreclosure filings increased by more than 50%. Based on RealtyTrac’s 2012 data, 24/7 Wall St. reviewed the 10 states with the highest rate of homes in foreclosure.

10. Colorado
> 2012 foreclosure rate: 1.64%
> November, 2012 unemployment: 7.3% (20th highest)
> Home price change (2007Q2-2012Q2): -7.3% (34th largest decline)
> Processing period: 145 days


9. South Carolina
> 2012 foreclosure rate: 1.66%
> November, 2012 unemployment: 8.3% (12th highest)
> Home price change (2007Q2-2012Q2): -10.8% (27th largest decline)
> Processing period: 150 days

8. Michigan
> 2012 foreclosure rate: 1.69%
> November, 2012 unemployment: 8.9% (6th highest)
> Home price change (2007Q2-2012Q2): -31.9% (6th largest decline)
> Processing period: 60 days

7. Ohio
> 2012 foreclosure rate: 1.75%
> November, 2012 unemployment: 6.8% (25th lowest)
> Home price change (2007Q2-2012Q2): -11.6% (23rd largest decline)
> Processing period: 217 days

6. California
> 2012 foreclosure rate: 2.33%
> November, 2012 unemployment: 9.8% (3rd highest)
> Home price change (2007Q2-2012Q2): -41.0% (4th largest decline)
> Processing period: 117 days

5. Illinois
> 2012 foreclosure rate: 2.58% (tied for 4th highest)
> November, 2012 unemployment: 8.7% (8th highest)
> Home price change (2007Q2-2012Q2): -30.3% (7th largest decline)
> Processing period: 300 days

4. Georgia
> 2012 foreclosure rate: 2.58% (tied for 4th highest)
> November, 2012 unemployment: 8.5% (9th highest)
> Home price change (2007Q2-2012Q2): -32.9% (5th largest decline)
> Processing period: 37 days

3. Arizona
> 2012 foreclosure rate: 2.69%
> November, 2012 unemployment: 7.8% (17th highest)
> Home price change (2007Q2-2012Q2): -45.1% (2nd largest decline)
> Processing period: 90+ days

2. Nevada
> 2012 foreclosure rate: 2.70%
> November, 2012 unemployment: 10.8% (the highest)
> Home price change (2007Q2-2012Q2): -56.8% (the largest decline)
> Processing period: 116 days

1. Florida
> 2012 foreclosure rate: 3.11%
> November, 2012 unemployment: 8.1% (15th highest)
> Home price change (2007Q2-2012Q2): -43.8% (3rd largest decline)
> Processing period: 135 days