Foreclosure filings in January fell to their lowest level since April 2007, reported.

Notices of default, scheduled auctions, bank repossessions and other filings fell to 150,864 last month, a 7 percent decline from the previous month and 28 percent drop from January 2012, according to RealtyTrac. 

Regulations that took effect in California contributed to the dramatic decline. A Homeowner Bill of Rights in the state became law, offering more protections for California borrowers, leading to a 62 percent decrease in new foreclosure filings in the state.

Bank repossessions fell to less than half of the record 102,134, set in September 2010. RealtyTrac is forecasting steady improvement throughout the year.