Southern California foreclosures dropped by 58% from August to September, according to Mt. Pleasant, Penn.-based Default Research, which tracked the industry.
The largest declines in Southern California came from Ventura (65%), San Diego (60%) and Los Angeles (59%) counties.
Northern California saw a similar drop in foreclosures, by 54%.
But there's a catch. The significant decline "is largely due to state Senate Bill 1137 which was passed last July and went into effect on September 8, 2008."
The new state law is meant to slow down the foreclosure process.
"While we hope to see these positive numbers continue in the future, they are not reflective of the still dismal foreclosure situation in California," said Serdar Bankaci, founder of Default Research, in a statement. "Because the new law requires lenders to contact residence at least 30 days before filing a Notice of Default, the result is a lower number of recordings now. However, we expect to see the numbers increase again starting in November and December."
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