According to the latest figures released, the foreclosure activity has fallen significantly in the state of California during February.

Irvine-based RealtyTrac said in a report released today that the foreclosure activity, which includes default notices, scheduled auctions and bank repossessions, continued to fall in the state indicating a sustainable recovery in the housing market. Its monthly foreclosure market report showed that foreclosure filings fell 65 per cent to 18,003 properties in the state during February compared to the same month of the previous year. The data also showed that the foreclosures fell 65 per cent to 18,093 in January from January 2012.

The report credited that "homeowner bill of rights" of the state for bringing a fall in the number of foreclosures. The state legislation aimed at helping homeowners in the state came into effect on 1 January, 2013. Experts say that the settlement agreement between federal agenciesand the mortage lenders will help the home owners.

Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U. S. Bank, and Wells Fargo have agreed to pay a combined $9.3 billion in settlement under the final agreement. The mortgage companies were accused of using improper foreclosure methods in 2009 and 2010, putting borrowers in disadvantageous position.