The auction date is scheduled and the homeowner panicked after recieveing 3 separate denials from their lender to modify the loan. The homeowner told me that she’d spent a lot of money, more than $800, for a “law firm’ to work on a modification.

She said she was aware of  law SB94 about NOT paying upfront fees, but her husband had made the decision to do so. It is very unsettling to see this happen to those already under so much stress and confusion about the situation.

If you find yourself in this situation of being denied a modification and needing to choose short sale or foreclosure, here is my advice (having dealt with banks in these situations over the last few years for my clients).

When they tell you you do not qualify for a modification, they actually set up an auction date to sell the property at the court house steps. At this point, a decision between short sale or foreclosure needs to be made. The auction dates can and do get postponed, especially if you list the house for sale, however if you ignore making the choice and there is no headway being made, someone will knock on your door and say they are the new owner.

I’ve witnessed this last year with an elderly lady that did not believe she deserved to have her house taken and was planning to keep it, however she had an upcoming sale date. About a week after I talked to her, she called me crying that the house was being sold that morning. At that point, although I made calls and inquired about stopping the sale, her choice between short sale or foreclosure was simply too late! The house was sold and by noon, the new owner knocked on her door to let her know he was the new owner.

Some people expect they will get a notice from the bank about the sale date. What they may not understand…a notice was given and in some cases maybe 12-months prior when the payments were no longer being made by the borrower. It is called an NOD (Notice of Default).

Once that notice is delivered, regardless if 12-months, 24- months later,  and a homeowner has been able to slide under the radar without making payments, the house can be auctioned out from under the current owner. At that point, the homeowner is basically ejected from the home.

Difficult choices need to be made. Do your homework. Consult with professionals, licensed and in good-standing. Check licenses, check expiration dates and google these individuals before hiring them.

I have a great list of professionals to help distressed homeowners make these difficult decisions between short sale or foreclosure. Just send me an email and I will happily forward you names. It is advisable to speak with a Real Estate Attorney, Tax Attorney, and/or CPA. Making the wrong decision regarding short sale or foreclosure could follow you for several years.

Residential Real Estate in Pleasanton is the topic of the upcoming Town Hall Meeting to be held Wednesday, May 27 from 7:00 – 9:00. A Panel of experts will provide insight as to the state of the market. This event will be held at the Veterans Hall in Pleasanton and is hosted by The City of Pleasanton, Pleasanton Chamber of Commerce, Pleasanton Weekly and the Bay East Association of REALTORS®. The event is open to the public at no cost to attend.

The following evening, Thursday May 28,  Kurt Kessler of Pleasanton Mortgage and Rhonda Fee of Realty World Town & Country are holding a FREE Home Buyer Seminar at 6:30 PM at The Rose Hotel in Pleasanton

The seminar is designed to answer many of your questions including:

• The difference between REO, Bank Owned and Short Sale Properties.
• The new role the FHA plays in both the mortgage and real estate markets.
• Seller concessions…What are they, how can they help YOU buy a home?
• Pre-approval vs. Pre-qualified…What’s the difference?
• Credit Scores and How to Improve them!
• Understanding the Stimulus Plan’s $8,000 Tax Credit for qualifying income (ends Dec. 1, 2009)
• Why we have “artificially” low interest rates and what might be next?
• The home/loan buying process and strategies

There is NO COST to attend, but space is limited. To make your reservation, please contact Rhonda Fee at 925.200.0827 or email rhonda. mailto:rhonda@rhondafee.com.

In order to better understand the current real estate market, Kurt Kessler of Pleasanton Mortgageand I are offering a FREE Homebuyer’s Seminar. This will help you learn:

• The difference between REO, Bank Owned and Foreclosed properties,
• How to get the most current, updated list of foreclosed properties,
• What about Short Sales? Might that be a viable option or should you stay away,
• The new role FHA plays in the Mortgage and Real Estate Markets,
• How NEW loan limits have created buying opportunities,
• Seller concessions…What are they? How can they help?
• The difference between Pre-Approval and Pre-Qualifications,
• Understanding the $8,000 Stimulus Package credit.

To sign up, click here for your reservation. Space is limited as the Rose Hotel room we use only holds about 12 people. This is very useful information and is an absolutely NO pressure seminar. You’ll gain great insight as to how to benefit from this market.

In January as an effort to stimulate the housing market, a moratorium was placed on foreclosures by the Obama Administration. As of April 2009, the moratorium has ended. What does this mean to you? It depends on your personal situation.

For Some It Could Mean:

• Opportunities to buy your first home, second home or investment properties at “artificially” low interest rates.
• $8,000 Government rebate on your taxes if you are a first-time homebuyer with qualifying income and purchase prior to 12.31.09.

For Others It Could Mean:

• Making your last efforts to modify your current home loan.

How You Might Get Help:

• If you are in default and you currently have a Countrywide Home loan, they have just released a product that might help you refinance your property. It requires NO income documentation as long as you are employed!
• If you are looking to buy homes at these low rates, for investment, primary residence or second home, you can receive up-to-the-minute reports on every bank owned property in the areas & price range of your choice.