For the first time this year, both year-over-year foreclosure petitions and deeds decreased in Massachusetts, according to The Warren Group, publisher of Banker & Tradesman.

Foreclosure petitions – the first step in the foreclosure process in Massachusetts – dropped to 1,127 in October, a near 51 percent decrease from 2,296 in October 2009. This is the first month since January that foreclosure petitions have dropped below 2,000. A total of 22,091 foreclosure petitions have been filed so far this year, compared to 23,931 for the same period last year.

"It’s possible that this decline in foreclosure starts was influenced by the example set by Bank of America when they temporarily suspended foreclosure activity," said Timothy M. Warren Jr., CEO of The Warren Group. "Lenders may have waited to file petitions while rechecking their procedures and paperwork. As a result, we are likely to see a decrease over the next few months because of these delays."

In October, 557 foreclosure deeds were recorded, down more than 39 percent from 914 in October 2009. Foreclosure deeds also dropped from a month ago, when there were 890 completed foreclosures. However, year-to-date foreclosure deeds are up. A total of 11,334 foreclosure deeds have been completed this year, up 47 percent from the same period last year. Deeds have already outnumbered the amount recorded in the Bay State in 2009 and could outpace the record number in 2008. There were 12,430 and 9,269 foreclosure deeds in all of 2008 and 2009, respectively.

"It’s a bit encouraging to see completed foreclosures drop by such a large margin this month," said Warren. "We haven’t seen this low level of foreclosure deeds in any month in more than three years."

The last time foreclosure deeds dipped lower than the number seen in October was in April 2007, when there were 464 foreclosure deeds. October is also the first month in 2010 were there was a decrease in year-over-year completed foreclosures.

"While the decreases in foreclosure volume are welcoming, we should not be fooled into thinking that foreclosure problems are behind us," Warren added. "Due to job and economic conditions, many homeowners are delinquent on their mortgages and those problems will eventually find their way into foreclosure statistics."

October marked the highest number of auction announcements tracked by The Warren Group so far this year. Auction announcements jumped more than 26 percent to 3,292 from 2,603 in October 2009 and were also 43 percent higher than the 2,301 auction announcements tracked in September.