La Costa

To update a previous item, foreclosures and default notices stayed steady in 2011 across San Diego County, but new numbers suggest that those figures dropped dramatically in North County, as well as South Riverside County.

According to a study released by ForeclosureRadar, notices of default were down in every ZIP code in North County. Actual foreclosure numbers were more uneven. Many coastal ZIP codes witnessed an increase in foreclosures due to high-end markets tumbling in value faster than the rest of the market. However, most of the rest of the county saw sizable decrease in foreclosures, partially due to lenders allowing sellers to sell properties for less than the amount owed on the loan.

“More servicers and banks are willing to consider a short sale,” said Mark Goldman, an instructor at San Diego State University. “They’re coming to realize they’ll have more income on a short sale than they will on the expense of a foreclosure.”

Last year, lenders send 22.6 notices of default per 1,000 households, compared to the high-water mark of 43.1 notices per 1,000 achieved in 2009. Defaults were down 12 percent when compared to 2010.

Foreclosures occurred at a rate of 11 houses per 1,000 in 2011, down from a peak of 21.1 foreclosures per 1,000 recorded in 2008. Foreclosure auctions were down 14 percent from 2010.

Housing experts still warn that foreclosure rates are still higher than average. A healthy real estate market should see a rate of 4 foreclosures per 1,000 households. Still, the real estate market in North County seems to be on the right track towards a healthy market.