According to ForeclosureRadar.com, the filing of notices of default declined 61% from the August level of 42,790 to the September level of 16,352. This was primarily due to a new state law requiring lenders to notify owners of the filing, their options and waiting 30 days before proceeding. While this is a nice headline on the surface, it seems that it will only delay the process of foreclosure not eliminate it altogether. “The drop indicates that the lenders were not ready for the impact,” said Sean O’Toole, founder of ForeclosureRadar.com. The move by the state was to encourage lenders to modify loans to help make the homes more affordable and thus help people keep their homes. The only issue then becomes that, according to Sean O'Toole, it might encourage non-defaulting homeowners to default in hopes of getting a principal amount reduction of their mortgage balance and still be able to keep their homes.