Massachusetts foreclosure activity in May dropped more than 42 percent year-over-year, according to a new estimate from foreclosure listing firm RealtyTrac.

A total of 2,446 properties were in some state of foreclosure in May. That’s one in every 1,124 housing units, RealtyTrac reported.

The Bay State ranked 29th nationally for foreclosure activity.

The number of homes nationwide seized by banks also fell in May as processing delays continued to hamper foreclosures. Banks took over 66,879 homes nationwide last month, a drop of 29 percent from a year earlier. One in every 605 homes nationally received a foreclosure filing in May.

"There’s about 4 million seriously delinquent borrowers out there, many of whom would already be in foreclosure except for processing delays," said Rick Sharga, senior vice president at RealtyTrac.

Sharga said weak demand from homebuyers is also putting a cap on foreclosures as it gives lenders little incentive to seize new homes if they can’t sell previously repossessed ones.

Investigations into the foreclosure process prompted temporary halts from some mortgage servicers late last year.

Nevada again had the nation’s highest foreclosure rate with 1 in every 103 homes getting a foreclosure filing. While bank repossessions were down 21 percent from the record high hit in April, default notices rose 8 percent.

Arizona, California and Michigan were also among states with the highest foreclosure rates, RealtyTrac said.

The California-based firm puts out estimated figures. Actual figures, compiled by The Warren Group, publisher of Banker & Tradesman, will be available later this month.