In 2009, San Diego experienced a record-setting number of defaults and foreclosures.  The steps of the foreclosure process in California include:  1) a notice of default, 2) a notice of auction, and 3) a foreclosure auction.   The middle step, notice of auction, has been used more recently, especially by Bank of America, as banks attempt to put pressure on their borrowers.   According to Leonard Baron, a professor of real estate at San Diego State University, a “notice of auction” does not mean the bank is going to foreclose; it’s merely a precaution so the bank can foreclose if they need to.   Last month, in North County, the number of borrowers receiving notices of default decreased by 2.8% from March of this year and 37% from April 2009.  Homes sold last month by foreclosure auction decreased by 47% from March of this year and 70% from April 2009.  Southwest County experienced similar trends in the foreclosure process.  Baron believes this is because "banks are trying to modify loans a lot because of pressure from the administration (of President Barack Obama), or short-sale them.  It's a lot less costly."
 
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