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A dramatic drop in homes entering foreclosure is the latest sign of real improvement for the housing market, which continues to recover from the collapse six years ago. “The overall picture is we’re on a path back to normal foreclosure activity,” says Darren Blomquist of the listings firm RealtyTrac. “We’re really over two-thirds on the way there.” RealtyTrac says nearly 56,000 homes entered the foreclosure process last month. That’s down 8 percent from July and down 44 percent from August last year. Foreclosure sales by banks rose. “That actually I believe is a function of the recovering market,” says Blomquist. “The banks now feel more comfortable foreclosing because home prices are higher.” They can recoup more of their losses.