ForeclosureRadar reports banks filed 904 notices of default in Orange County in September, down 64% from August and 25% from a year ago, according to a story in The Orange County Register. But the dramatic decline in defaults (which initiate the foreclosure process), is due to Senate bill SB 1137, according to ForeclosureRadar. The bill's foreclosure provision enacted on September 8 stipulates that servicers must contact a homeowner at least 30 days before filing a NOD and explain what options the borrower has to avoid foreclosure. Sean O'Toole, president of the company, has noted that the drop in foreclosure starts would be temporary as banks adjust to the new law, calling it a paperwork issue.
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