My last article on foreclosures stated that there are only five foreclosures in the 92037 zip code for sale.  This is correct but after researching Realist.com there actually are 240 La Jolla foreclosures in different stages.

Here are the statistics on the three stages of foreclosures:

115 Preforeclosures

76 Auction

49 Bank Owned

During the preforeclosure the homeowner is given a grace period of three months from the filing of the notice of default to cure the default.  This gives the homeowner time to reinstate his loan by paying back payments and penalities.  If the homeowner does make his payments current then the foreclosure is stopped.

Simply stated, the next step is the bank puts the home up for auction.  Sometimes the home is not sold by auction and the bank becomes the owner and the home is held by the bank.  This is called Real Estate Owned or REO.  Many banks are holding their REO for more information on foreclosures in La Jolla go to http://www.answers.com/topic/real-estate-owned-1 or www.realist.com

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Foreclosures in La Jolla are on the decline and almost non-existent.  Base on the statistic on SDAR, MLS and www.Redfin.com there are a total of five foreclosures in the 92037 zip code.  They range from $650,000 to $3,300,000 with an average of $1,795,000 and the average 76 days on the market.  This is excellent news.

All indicators show that the market is picking up and the lower priced homes in La Jolla are starting to sell.  In fact there are some multiple offers on the properties that are priced right.  With that said there are approximately 32 short sales with the average price being $773,400 and the highest priced at $1,995,000.  These short sales have offers on them and are contingent to the lender’s and seller’s approval per SDAR MLS.

The difference between the short sale and foreclosure is that the short sales not only have to have the lender’s approval but the seller approves the price they want to sell the home for because sellers still owns the home.  Foreclosures are owned solely by the banks.

For more information about the foreclosures that are available in La Jolla email snystrom@san.rr.com or mbmercedes@earthlink.net.

Recourse: www.Redfin.com