September California Foreclosure Report

New foreclosure activity plunges, California State Senate Bill 1137 takes effect, dramatically impacting foreclosure filings.

Notice of Default filings, which indicate the start of the foreclosure process, fell 61.8 percent in September due primarily to new legislation that went into effect on September 8th. California State Senate Bill 1137 imposes significant new requirements on lenders prior to filing for foreclosure, and the drop indicates that the lenders were not ready for the impact. The bill also effected new Notice of Trustee Sale filings, which dropped 47.3 percent from August. The bill did not directly impact foreclosure sales; however, they still fell by 12.4 percent.