IPhone 4 taking back camera pictures in black and white?

The back camera on my iPhone is taking pictures in black and white. When I click into my camera and get ready to take a picture, I can see it in color for a fraction of a second and then it quickly fades to black and white. I have an editing app that allows you to take pictures inside the camera and it does the same there. It's very frustrating. I don't believe my iPhone is jailbroken. It's a replacement iPhone that was restored to factory condition by my insurance company. Everything works besides this. What is going on?

I think something is wrong with your camera, but sorry I don't know why. Better take it to Apple.

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