It's worse than that - there is a huge backlog of houses waiting to be foreclosed, but the banks can't show that on their books. Actually, Geitner just made "the good deal" to put these properties on the Fed's books, so they can't realize that loss - somewhere in the neighborhood of 6 trillion in bad mortgage debt.
Betty thinks this is good news, because she saw the word drop - all critical thinking stopped right there.
It means you don't understand what the article (which I assume you didn't read) means. The foreclosure rate is low because banks are dragging out the process - the average time to foreclose is over 1,000 days (that's 3 years in #$%$. Up almost 2 years from previous time to foreclose..
Robosigning was supposed to let these houses hit the market, but the banks have decided that would be a bad thing, maybe bad for their firehose of money from the fed. Regardless, the number you are parotting has nothing to do with anything positive in the economy.