The answer is a resounding YES!
Based on this report by Transunion, we are going to start to see less and less foreclosures in the market in 2012, and that is welcome news. It will end up being a slow gradual type of thing, and you might not notice it unless you are selling your home or trying to buy a foreclosure specifically, in which case you are going to have less choices.
There are a number of reasons for this; banks holding or evern RENTING out foreclosed homes instead of flooding the market, banks paying owners to short sale their homes instead of foreclosing on them, and banks going in and fixing homes up and DOING THE RIGHT thing so the values hold and they sell faster. THIS is what they should have been doing 5 years ago of course!!!