RIVERSIDE -- Riverside County had the second-highest foreclosure rate in the state last month, a real estate tracking firm reported today.

A total 7,068 mortgage default notices, auction sale notices and bank repossessions were recorded countywide in July, according to Irvine-based RealtyTrac.

The figure translated to 1 in 109 households in some stage of foreclosure, placing the county at No. 2 in statewide foreclosure activity. It was No. 3 in June.

Stanislaus County was No. 1, with 1 in 102 households in default, while Merced County was just behind Riverside with 1 in 111 households, followed by San Bernardino County, with 1 in 115, and San Joaquin County with in 116, according to RealtyTrac.

Riverside County's foreclosure activity was roughly three percent lower than in June and 41 percent below the year-ago level, figures showed.

Nationally, 325,229 properties slid into foreclosure in July -- a four percent increase from the prior month but a 10 percent drop compared to July 2009.

"Declines in new default notices, which were down on a year-over-year basis for the sixth straight month in July, have been offset by near-record levels of bank repossessions, which increased on a year-over-year basis for the eighth straight month," said RealtyTrac CEO James J. Saccacio.

California ranked No. 4 in U.S. foreclosure activity, with 66,910 residential properties -- or 1 in 200 -- in default. The volume was down three percent from June and 38 percent from a year ago, according to figures.

Nevada was No. 1, followed by Arizona and Florida, with Idaho just behind California at No. 5.