Massachusetts foreclosure activity plummeted in January, posting double digit decreases in both starts and completed foreclosures, according to the latest report from The Warren Group, publisher of Banker & Tradesman.

The number of foreclosure petitions statewide dropped almost 58 percent – declining to 793 from 1,874 in January 2010. Petitions, which mark the first step in the foreclosure process in Massachusetts, increased from a month ago. There were 733 petitions in December. This marks the second consecutive month petitions fell below 1,000.

"Slowing foreclosure activity could be a result of several factors. Unfortunately it’s more likely that the reduction is caused by lenders slowing their processes rather than improved financial stability among homeowners," said Vincent M. Valvo, group publisher and editor-in-chief of Banker & Tradesman.

In January, there were 468 foreclosure deeds, a near 59 percent drop from 1,141 deeds recorded in January 2010. Foreclosure deeds represent completed foreclosures. Deeds also decreased in January from a month earlier; there were 481 recorded in December.

Foreclosure petitions and deeds in January dropped in every county in Massachusetts.

The Warren Group also tracked a large decrease in auction announcements in January. A total of 1,122 auction announcements were tracked in January, a near 53 percent drop from 2,385 during the same month last year. Auction announcements, however, bumped up in January from 1,076 in December.