Lenders initiated the foreclosure process on 1,868 home loans in November in Orange County, up 55 percent from a year ago but down 13 percent from October.

The big rise in notices of default from a year ago is largely due to a state law enacted in September 2008 that delayed or halted foreclosure filings. The law requires banks to attempt to talk to borrowers at least 30 days before filing a default notice and discuss options to avoid foreclosure. The law impacts loans made at the tail end of the housing boom.

Default notices have been trending down since July. One reason might be pressure on lenders and servicers to help people avoid foreclosure.

But the poor performance of the Obama administration’s loan aid program, could mean more short sales and foreclosures in 2010. (In a short sale, a homeowner sells for less than debt owed the bank.)

Banks foreclosed on 676 houses and condos in November, up 6.8 percent from a year ago but down 11.4 percent from October.

The following table shows defaults and foreclosures (Forec.) going back to 2007:

Year200920082007
Month Defaults Forec. Defaults Forec. Defaults Forec.
January 2,200 835 2,352 802 847 152
February 2,742 770 2,254 733 811 164
March 3,485 541 2,476 698 986 204
April 2,947 482 2,598 898 855 234
May 2,590 591 2,468 1,131 1,021 276
June 2,724 833 2,498 1,213 1,108 311
July 2,968 806 2,337 1,362 1,167 367
August 2,246 723 2,484 1,441 1,476 469
September 2,222 709 871 1,194 1,239 444
October 2,152 763 925 737 1,448 530
November 1,868 676 1,205 633 933 364
December     2,351 718 1,895 644
TOTAL 28,144 7,729 24,819 11,560 13,786 4,159

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