Foreclosure starts dropped to the lowest level recorded since January 2005, according to Black Knight Financial Services' October First Look report.

In total, there were 56,500 foreclosure starts in October, down 8.43% from September and 22.81% from a year earlier. There are 504,000 homes in the presale inventory, down 5,000 from September and 217,000 from October 2015.

While foreclosures fell on all accounts, the total delinquency rate, which includes loans that are 30 or more days past due but not in foreclosure, increased 1.84% to 4.35% in October. Still, this figure dropped 8.87% from a year ago.

Mississippi had the highest noncurrent percentage of any state at 11.23%, while North Dakota had the lowest at 2.22%. Oregon showed the greatest improvement over the past six months of any state in terms of its noncurrent percentage, and Wyoming showcased the most deterioration of any state.