Los Angeles home foreclosures fell sharply in October from September as a new California law came into effect, while the number of foreclosures in Miami continued to grow at a slower rate, real estate research website PropertyShark.com said Tuesday.
The number of newly scheduled auctions on foreclosed properties in Los Angeles county fell 51 percent, the greatest monthly decline in two years.
The law, passed July 8, requires lenders to contact homeowners and explore options to avoid foreclosure before initiating the process. Some sections of the law became effective Sept 8.
Its implementation accounted for most of the decline, to 2,389, in the number of newly scheduled auctions foreclosures in Los Angeles County, said PropertyShark.com Chief Executive Bill Staniford.
By comparison, such auctions fell only about 1 percent to 4,863 between August and September.
However, the law requires only a 30-day waiting period before the lender files the foreclosure notice, which means the closure of that period might result in a reversal of this month’s dip, Staniford said.
"We could see this snap right back," he said. Continue reading L.A. Foreclosures Down 50%- For Now