Bank repossessions and default notices in September fell 32% from August.
Darren Bloomquist is an analyst with RealtyTrac, the online foreclosure listing service that released the figures.
He says the month-to-month decline can be attributed to a state law that took effect in September.
"That legislation requires lenders to contact homeowners 30 days before they file a Notice of Default and I think the lenders became much more careful about making sure they were following that new law and that’s why you saw such a dramatic decrease in the numbers for September."
However RealtyTrac’s year-over-year statistics show a 36% increase in home foreclosures statewide.
The numbers also show that California accounts for six of the top 10 U.Ss cities with the highest foreclosure rates. Stockton heads the list and Sacramento comes in at number seven.