Notices of default, which are issued when a borrower misses several mortgage payments, fell 19% from July through September compared with the same period in 2008, and repossessions were down 37%, according to San Diego-based MDA DataQuick.

DataQuick said the declines were probably due to efforts by lenders to modify loan payments or postpone foreclosures as the possibility of further government intervention looms.

“It may well be that lenders have intentionally slowed down the pace of formal foreclosure proceedings. If so, it’s not out of the goodness of their hearts. It’s because they’ve concluded that flooding the market with cheap foreclosures in this economic environment may not be in their best financial interest,” said John Walsh, DataQuick president. “Trying to keep motivated, employed homeowners in their homes might be the most cost-efficient way to stem losses.”

Notices of default totaled 111,689 in the third quarter; home repossessions numbered 50,013. There are 8.5 million homes in California, DataQuick said.