"Relaxed interest rates" offered many people more leniency when dealing with banks, he said.
The Terralink data, which is derived from the registration of actual foreclosures, does not account for the early settlement of foreclosure registrations - which could explain Northland's high figures, Mr Dear said.
"A lot of the registrations don't actually go through. They might go to market and when we get them to market they get settled either by another bank or family members."
Nationally, the number of mortgagee sales slumped to a four-year low in the three months to December.
There were 461 foreclosures - 11 per cent less than during the previous three months and 24 per cent fewer than the same quarter in 2011.
The number of forced sales for the 2012 year totalled 2106, 30 per cent down on 2009 at the height of the recession.
Terralink managing director Mike Donald said Auckland's property market experienced the largest drop.
In 2007, 42 per cent of foreclosures occurred in Auckland. This declined to 21.5 per cent in the December 2012 quarter.
Auckland's buoyant property market is being credited for the fall.
While Auckland mortgagee sales have declined, a wider regional breakdown shows forced sales were up in Marlborough, Taranaki, Waikato, Canterbury, Nelson and the Bay of Plenty in the three months to December.
About 78 per cent of mortgagee sales occurred in areas outside of Auckland during the December quarter - up significantly on 2007 figures.
Meanwhile, investor owners - those who own between three and five properties - accounted for nearly a third of mortgagee sales - slightly up on the previous period.
In contrast, individual 'mum and dad' property owners made up just 15 per cent of forced sales showing that fewer cash-strapped families lost their homes in foreclosures.
Mr Donald said the downward trend indicated "an end to the volatility which has characterised the last four years".
"This is encouraging news for property owners after a long period of difficulty and pressure."
