New foreclosure actions in California drop to 2007 level

The number of new foreclosure actions on California homes dropped to its lowest level in close to five years during the first three months of the year.

Banks filed a total of 56,258 notices of default on California homes in the first quarter, San Diego real estate research firm DataQuick reported.

That was an 8.5% decline from the prior quarter and a 17.6% plunge from the same period a year prior. The notice of default is the first formal action taken by banks in the foreclosure process. Last quarter’s tally was the lowest since the second quarter of 2007.

The number of homes lost to foreclosure also declined, by 3.2% from the prior quarter and 29.7% from the same period a year prior. A total of 30,261 trustees deeds were recorded against homes in California counties during the first three months of the year.

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