The 70% figure I used includes pendings and closed sales, but doesn’t include the probate, divorce and relocation sellers who are also compelled to sell regardless of price.

Another thing to note is that not all of the REOs and short sales are being openly marketed as such in the MLS – the only way you’d find some of them is to check their current ownership, which is very time consuming.

That’s why I haven’t surveyed that many zips, just a couple that I knew would be likely candidates. Oceanside’s 92056 and 92057 zips were at the top of my list. Some of the S/E San Diego zips, like 92139 and the southern half of 92102 were also no-brainers. I’m sure there are more, like the east side of Chula Vista and parts of Escondido and El Cajon.