The number of homes entering foreclosure in California fell to a four-year low in the second quarter of the year, according to a recent report.
The report credits the foreclosure lull on a more stable housing market as well as policy changes in the mortgage servicing industry. Hopefully this will improve the affordable housing markets .

A total of 56,633 Notices of Default were recorded during the April-to-June period, down 17 percent from 68,239 in the previous quarter, and down 19.2 percent from 70,051 in second-quarter 2010, according to  DataQuick, a  southern california reporting firm

Last quarter’s activity was the lowest for any quarter since  the second quarter of 2007 at 53,493. This is particularly noteworthy because 2007 was pre “bubble burst”

“A lot of theories are being floated as to why the numbers are down,” said John Walsh, DataQuick president. “Bank policy changes. Legal challenges. Politics. Holding back temporarily so as not to flood the market. The fact of the matter is that no one really knows, outside of lending and servicing industry insiders. One thing is certain: Homeowner distress spreads fastest when home price declines are steepest. And it now appears likely that, barring some new economic shock, the worst of the price declines are behind us.”

On a similar vein; the statewide median sales price was $250,000
in the second quarter, while this was down 7.4 percent from $260,000 a year earlier. In first-quarter 2009, when foreclosure activity peaked, the $227,000 median was down 39.5 percent from $375,000 a year earlier.