The number of California homeowners entering the foreclosure process plunged to the lowest level in more than seven years last quarter, according to DataQuick.
During the first quarter of 2013 lenders recorded 18,567 notices of default on California houses and condos, down 51.4% from 38,212 during the prior three months, and down 67% from 56,258 in the first quarter of 2012, according to the company.
“Foreclosure starts were already trending much lower late last year because of rising home prices, a stronger labor market and the settlement agreement between the government and some lenders. But it appears last quarter’s drop was especially sharp because of a package of new state foreclosure laws—
Walsh said the decrease may not be sustained.
“In recent years we’ve seen temporary lulls in foreclosure activity after new laws kick in and lenders adjust. It’s certainly possible foreclosure starts will pick up at some point this year if lenders need to play a lot of catch-up,” he said.
